Oil Holds Gain Before OPEC Monthly Report and US Inflation Data

(Bloomberg) -- Oil held a modest gain before a series of market reports and US inflation data, which may provide direction for prices that are stuck in a tight range.

Brent futures traded above $82 a barrel after adding 0.2% on Monday, while West Texas Intermediate crude was near $78. The raft of information that investors will have to digest on Tuesday include OPEC’s monthly report, industry figures on US stockpiles and an inflation print for February.

Oil is up for the year but prices have been caught between the push and pull of bullish and bearish factors. OPEC+ supply cuts have been offset by higher output from outside the group, while concerns about Chinese demand persist. Later this week, the International Energy Agency will provide a snapshot on the market.

“There have been mixed signals on oil demand from OPEC and the US Energy Information Administration, and they need to find consensus for the market to have clear direction,” said Charu Chanana, an analyst at Saxo Capital Markets Pte in Singapore.

Traders will also be watching developments between Israel and Hamas, with cease-fire talks at an impasse as Ramadan begins and the US warning against an escalation. Israel had previously said it would launch an offensive in the city of Rafah unless its hostages are returned by the Muslim holy month.

©2024 Bloomberg L.P.