Oil prices traded lower on Tuesday as investors waited for key U.S. inflation data and the outcome of the Federal Reserve’s policy meeting to glean a clearer picture of where inflation is heading, and how that will affect fuel demand.
Brent crude futures fell 11 cents, or 0.13%, to $81.52 per barrel by 0433 GMT and U.S. West Texas Intermediate crude futures slipped 3 cents, or 0.04%, to $77.71.
Prices had climbed about 3% to a one-week high on Monday, buoyed by expectations that the Northern Hemisphere summer vacation season will boost fuel demand this summer, a gain some analysts said was likely to be short-lived given the prospect of higher interest rates remained.
The release of U.S. consumer price index data for May and the conclusion of the Fed’s two-day policy meeting are both scheduled for Wednesday.
“More conviction may be needed in oil prices for a more sustained recovery with a move above the US$83.00 level, given that the broader trend for oil prices still leans on the downside with a series of higher highs since April,” IG market strategist Yeap Jun Rong said.
