Brent crude futures traded above $90 a barrel on Tuesday as investors await macroeconomic data that could indicate whether interest rates in the U.S. and Europe will rise further.
November Brent crude futures were up 22 cents to $90.86 a barrel at 0630 GMT, while West Texas Intermediate (WTI) crude futures were up 29 cents to $87.58 a barrel for October.
Brent reached $90 per barrel for the first time in 10 months after Saudi Arabia and Russia announced they would extend voluntary supply cuts totaling 1.3 million barrels per day (bpd) until the end of the year.
Investors will be watching the August U.S. consumer price index data, due on Wednesday, to get an idea of how much further interest rates will rise in the world’s largest economy and largest oil consumer.
The Fed is expected to leave interest rates unchanged at its policy meeting next week, but there is disagreement on whether the Fed will raise them again in November or pause them.
The medium-term outlook for oil remains bullish and better economic data is expected from China.
OPEC+ production cuts continue to be the key factor behind the market’s upward momentum.
The European Commission predicted on Monday that the eurozone will grow more slowly than previously expected in 2023 and 2024. The European Central Bank (ECB), which also concerns oil markets, will announce its interest rate decision on Thursday.
US Crude inventories likely fell last week. Investors are awaiting API data on US crude oil stocks that will be released at 2030 GMT on Tuesday. Crude oil inventories are expected to fall by about 2 million barrels in the week to September 8, according to a preliminary survey.
Also this week, the International Energy Agency (IEA) and the Organization of Petroleum Exporting Countries (OPEC) will publish monthly reports.
Last month, the IEA cut its 2024 oil demand growth forecast to 1 million barrels per day, citing weak macroeconomic conditions. Meanwhile, in OPEC’s August report, no change was made in the forecast for a daily demand increase of 2.25 million barrels for 2024.