Oil prices rose slightly against the backdrop of geopolitical tensions in the Middle Eastbut expectations of a Fed rate cut are holding back growth.
About this writes Reuters.
Brent crude oil futures rose by $0.7 to $82.07 per barrel. The price of American West Texas Intermediate (WTI) oil also rose by $0.1 to $77.02 per barrel.
Oil prices were little changed in trading on February 12, after rising 6% last week.
The conflict in the Middle East, namely the actions of the Yemeni Houthis, who are attacking international vessels in the Red Sea, is keeping prices high.
However, concerns about interest rates limited gains in oil prices. The Fed said the January survey of consumer expectations showed that inflation forecasts were unchanged one year and five years from now, and both remained above the Fed’s 2% target rate.
If inflationary fears delay the Fed’s rate cut, it could reduce demand for oil, slowing economic growth.
Market participants await industrial data on US crude oil inventories. Four analysts polled by Reuters on average estimated that oil inventories rose by about 2.6 million barrels in the week to February 9.
It is added that the Organization of the Petroleum Exporting Countries also plans to publish its monthly report on the state of the oil market. OPEC member Iraq said on February 12 that it abides by the organization’s decisions and will produce no more than 4 million barrels per day (.
OPEC and its allies, including Russia, known as OPEC+, will decide in March whether to continue voluntary oil production cuts that were introduced in the first quarter.