The crude oil prices They fell on Monday, after three consecutive weeks of gains, as concerns about further interest rate hikes, which could dampen demand, balanced the outlook for a tighter market due to supply cuts by OPEC+ producers.
The dollar rose after US jobs data pointed to a tight labor market, raising expectations of another rate hike from the Federal Reserve. The strength of the dollar makes crude oil more expensive for buyers with other currencies and may weigh on demand.
The crude Brent fell 96 cents, or 0.2%, to $84.58 a barrel, while the West Texas Intermediate The US also fell 94 cents, or 0.1%, to $79.74.
“We expect this week’s trading to be heavily influenced by inflation data due Wednesday with CPI and Thursday with PPI, which will likely reignite the specter of higher interest rates that could strengthen the US dollar.” said Jim Ritterbusch, president of Ritterbusch and Associates.
Last week, crude oil rose more than 6% after OPEC+, the Organization of the Petroleum Exporting Countries (OPEC) and their allies, including Russia, surprised the market with a new round of production cuts starting in May.
Crude also benefited from a larger-than-expected fall in US crude inventories last week, as well as lower gasoline and distillate inventories, pointing to rising demand.
In global financial markets, the US inflation report to be released on Wednesday could help investors gauge the near-term path of interest rates.
On Thursday the monthly reports of OPEC will be published and on Friday those of the International Energy Agency, which will update the supply and demand forecasts for oil.
