By Yuka Obayashi
TOKYO (Reuters) – Oil prices remained stable in early trading in Asia on Tuesday as investors awaited inflation data to gauge future U.S. monetary policy and production policy decisions from the meeting of the OPEC+ of June 2.
The July Brent crude contract fell 3 cents to $83.07 a barrel by 0038 GMT. The more active August contract slipped 4 cents to $82.85.
U.S. West Texas Intermediate (WTI) crude futures for July were at $78.68, up 96 cents, or 1.2%, from Friday’s close, after trading for a day holiday in the United States to mark Memorial Day without regulation.
Oil prices rose more than 1% on Monday amid quiet trading due to public holidays in Britain and the United States, after a pessimistic week characterized by the outlook for US interest rates in the face of inflation. persistent.
“Investors are focusing on U.S. inflation data to determine the timing of rate cuts,” said Satoru Yoshida, commodities analyst at Rakuten Securities, adding that the market was also closely watching the upcoming meeting of the Organization of the Petroleum Exporting Countries and its allies. known as OPEC+.
“We expect oil prices to rise in the coming days due to continued voluntary production cuts by oil producers and growing prospects for US monetary policy easing,” he said. -he said, adding that the start of the automotive season in the United States would also provide support.
The U.S. Personal Consumption Expenditure Index, due this week, will be in the spotlight due to new signals regarding interest rate policy. The index, due to be released on May 31, is considered the US Federal Reserve’s preferred measure of inflation.
German inflation data on Wednesday and Eurozone inflation on Friday will also be watched for signs of a European rate cut that traders have forecast for next week.
All eyes are also on the next online OPEC+ meeting on June 2.
Producers will discuss whether to extend voluntary production cuts of 2.2 million barrels per day into the second half of the year, with three sources from OPEC+ countries saying an extension was likely.
Meanwhile, Goldman Sachs on Monday raised its global oil demand forecast for 2030 and expects consumption to peak by 2034 due to a potential slowdown in the adoption of electric vehicles (EVs), allowing refineries to operate at above-average rates until the end of this decade.
(Reporting by Yuka Obayashi; editing by Stephen Coates)
