Oil edges higher; market wary of U.S. inflation data

2022-07-13T06:47:28.000000Z

Shafaq News/ Oil edged up on Wednesday, a day after it fell through $100 a barrel for the first time since April, while traders looked towards U.S. inflation data that could weaken the market.

Brent crude futures were up 24 cents, or 0.2%, at $99.73 a barrel at 0325 GMT. U.S. West Texas Intermediate crude gained 10 cents, or 0.1%, to $95.94.

Investors have sold oil positions on worries that aggressive interest rate hikes to stem inflation will spur an economic downturn that will hit oil demand. Prices fell by more than 7% on Tuesday amid volatile trading.

A further concern is that U.S. interest rate rises in response to high inflation will push up the dollar, also undermining oil prices.

"Lingering recession fears continue to hit the market, whilst the strength of the USD and flare-up in Covid cases in parts of China is certainly not helping," said Warren Patterson, head of commodities strategy at ING.

Stephen Innes, managing partner of SPI Asset Management, pointed to the expected release of possibly hot U.S. consumer price index data later on Wednesday.

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