Oil prices rose in early Asian trading on Tuesday, as investors awaited inflation data to gauge future U.S. monetary policy and production policy decisions from an OPEC+ meeting scheduled for June 2.
price movement
Brent crude futures for July were up 17 cents, or 0.2 percent, at $83.28 a barrel by 0300 GMT. The more active August contract was up 0.24 percent at $83.95.
U.S. West Texas Intermediate (WTI) crude futures for July delivery rose $1.18, or 1.5 percent, to $78.68 from Friday's close after trading without settlement during a U.S. holiday.
Oil prices rose more than 1 percent on Monday in quiet trading due to a public holiday in Britain and the United States after a pessimistic week overshadowed by expectations of U.S. interest rates in the face of steady inflation.
Investors are focusing on U.S. inflation data to determine the timing of interest rate cuts, said Satoru Yoshida, a commodities analyst at Rakuten Securities, adding that the market is also closely watching the upcoming meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its allies, an alliance known as OPEC+.
He said: “We expect oil prices to rise in the coming days due to the expected continued voluntary cuts by oil producers and the increasing prospects of easing US monetary policy,” adding that the start of the US driving season will also provide support.
Markets are mainly focused on the US core personal consumption expenditures price index report due on Friday, which is the Federal Reserve's preferred inflation gauge.
Markets are also awaiting German inflation data due on Wednesday and inflation data from the wider euro zone on Friday for clues on an expected cut in European interest rates next week.
All eyes are also on the upcoming online meeting of the OPEC+ alliance on June 2.
Producers will discuss whether to extend voluntary output cuts of 2.2 million barrels per day into the second half of the year, and three OPEC+ sources said an extension was possible, Reuters reported.
