Oil prices rose on Tuesday, April 11, with market participants assessing the OPEC + decision to cut production, which would reduce supplies in the market, in exchange for concerns about raising interest rates, which is likely to hurt demand.
Investors are awaiting this week a group of reports about inflation, supply and demand in the oil market, which may determine the direction of the market.
Brent crude rose 8 cents to $84.26 a barrel, while West Texas Intermediate crude rose 11 cents to $79.85 a barrel.
Oil prices fell yesterday, Monday, after rising for 3 consecutive weeks, after US jobs data indicated a lack of employment, which raised expectations of another increase in interest rates by the Federal Reserve, which may lead to a decline in demand for oil.
Expectations of a rate hike boosted the dollar index on Monday and Tuesday, which could put pressure on oil prices, as the rise of the dollar makes oil more expensive for buyers holding other currencies.
Oil futures have risen more than 5% since the OPEC + group, which includes the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, announced last week a new round of production cuts starting in May, surprising the markets.
As for supply in the United States, US crude inventories data is scheduled for release on Tuesday. Five analysts polled by Reuters predicted that crude inventories fell by an average of 1.3 million barrels during the week ending April 7.
The US inflation report is due out on Wednesday and is expected to help investors determine the path of interest rates in the short term.
A monthly report is also expected from OPEC on Thursday and the International Energy Agency on Friday to update forecasts for oil demand and supply.
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