Oil Edges Higher Ahead of US Inflation Figures and OPEC Report

(Bloomberg) -- Oil rose ahead of key US inflation data and a monthly report from OPEC that will provide a snapshot on the market.

Brent traded above $72 a barrel after closing marginally higher on Tuesday, and West Texas Intermediate was near $69. The consumer price index figures for November are due later Wednesday and will provide clues on the path forward for monetary policy from the Federal Reserve. 

Crude has traded in a narrow range since mid-October, buffeted by a series of bullish and bearish factors including Middle East tensions and expectations for a global glut. The Biden administration is considering new sanctions on Russia’s oil trade, a move that could tighten the market and drive up prices.

The Organization of the Petroleum Exporting Countries will issue its report on supply and demand later Wednesday, which will be followed Thursday by a monthly release from the International Energy Agency. The US has reversed its prediction for a surplus and is now forecasting a small deficit in 2025, according to a report from the Energy Information Administration on Tuesday.

China, meanwhile, is set to start its annual work meeting on Wednesday to map out policies for next year. The two-day Central Economic Work Conference will likely discuss setting a growth goal for 2025, but specific figures will only be announced in March during a gathering of the legislature.

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