ALBAWABA – Oil prices rose Tuesday, as investors held out for the release of macroeconomic data in the United States (US) and the European Union (EU) pointing as to whether there will be more interest rate hikes coming soon.
Better late than never: India responds to Belt and Road with Mideast-India railway-corridorNovember Brent crude futures rose $0.28 to $90.92 a barrel at 0300 GMT, according to Reuters, while US West Texas Intermediate crude futures for October edged $0.35 higher, at $87.64.
WTI advanced toward $88 a barrel, after slipping 0.3 percent on Monday as technical indicators suggested its earlier gains may be overdone, Bloomberg reported.
Later today, the Organization of Petroleum Exporting Countries and US Energy Information Administration will both publish monthly market reports, and the International Energy Agency’s coming out Wednesday.
Higher US interest rates it more expensive for countries settling purchases in other currencies, lowering demand and therefore oil prices - Shutterstock
Oil prices hit their highest levels in ten months on Friday after top producers Saudi Arabia and Russia announced extending cuts of a combined 1.3 million barrels per day until the end of the year.
The US Federal Reserve is widely expected to leave interest rates unchanged at the policy meeting next week. However, views are split over whether the Fed will raise rates or pause again in November, according to Reuters.
Meanwhile, the European Central Bank will announce its interest rate decision on Thursday. The European Commission on Monday forecast the euro zone to grow more slowly than previously expected in 2023 and 2024, which impacts oil demand in Europe.
The IEA last month lowered its 2024 forecast for oil demand growth to 1 million bpd, whereas OPEC's August report kept its 2.25 million bpd demand growth forecast for 2024 unchanged.
