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Market anticipates release of inventories and economic data, resulting in stable oil prices


Sep 12, 2023

OPEC Secretary General Haitham Al Ghais criticized the practice of blaming and distorting the actions of OPEC and OPEC+. He emphasized that this behavior is counterproductive.

On Tuesday, Brent crude futures remained slightly above $90 per barrel. Investors were eagerly waiting for macroeconomic data that would shed light on whether Europe and the U.S. will continue to raise interest rates.

The international benchmark, Brent contract, saw a slight decrease of 6 cents to reach $90.58 per barrel at 0003 GMT. Similarly, U.S. West Texas Intermediate crude futures also experienced a marginal decline, down 2 cents to $87.27.

Last week, Brent reached $90 per barrel for the first time in 10 months after Saudi Arabia and Russia announced an extension of voluntary supply cuts totaling 1.3 million barrels per day until the end of the year.

Investors were particularly interested in the industry data on U.S. crude stockpiles that was scheduled to be released at 2030 GMT on Tuesday. Preliminary Reuters polls indicated that crude inventories were anticipated to decrease by approximately 2 million barrels in the week ending September 8.

In addition, the market was keeping an eye on the U.S. August consumer price index data set to be announced on Wednesday, as it could offer insights into potential interest rate increases. The European Central Bank’s interest rate decision was expected to be made known on Thursday. Surprisingly, on Monday, the European Commission predicted slower growth for the euro zone in 2023 and 2024.

This week, the International Energy Agency (IEA) and the Organization of the Petroleum Exporting Countries (OPEC) will also release their monthly reports. In last month’s report, the IEA adjusted its forecast for oil demand growth in 2024 to 1 million barrels per day, citing underwhelming macroeconomic conditions. However, OPEC’s August report maintained its earlier forecast of 2.25 million barrels per day growth in demand for 2024.

By Editor

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