Oil prices advanced, meaning they continued their recent positive tone, ahead of the industry’s data on weekly U.S. crude inventories as well as easing U.S. inflation.
U.S. crude futures advanced 0.92% to $80.43 a barrel, while Brent futures advanced 0.52% to $84.63 a barrel.
The American Petroleum Institute will release its weekly statistics on U.S. crude inventories. It will show another pullback after last week’s drop of more than 4 million barrels.
The API numbers serve as a precursor to official inventory reports to be released Wednesday from the U.S. EIA.
This week there is the U.S. consumer price index for March, which, if it shows inflation pulling back, could go a long way toward convincing the Federal Reserve to stop the cycle of rate hikes.
This will help support the crude oil market as it will boost economic activity in the world’s largest economy and also push back the dollar. A weak greenback makes oil more expensive for holders of other currencies.
The market has benefited from a rally that has seen prices advance about 20% over the past three weeks, helped by OPEC+’s surprise decision to cut output from next month.
A sign of improving demand in Asia is also boosting sentiment
Fuel consumption in India, the world’s third-largest oil consumer, rose 5% in March from a year earlier, statistics released on Tuesday showed.
Chinese airlines have begun hiring in significant numbers, positioning for an expected stabilization in travel demand this year after the country eases its COVID restrictions.
Investors boosted their bets on higher oil prices following the OPEC+ decision, posting their second-biggest advance in the past week.
Also expected this week are monthly oil market statistics from OPEC and the International Energy Agency, which will come on Thursday. China’s recovery may push oil demand to record highs this year.
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