Oil prices hit $80 amid lower US inflation

July 13, 2023 (MLN): Oil prices breached the $80 mark on Thursday, as the U.S. consumer price index (CPI) for the month of June 2023 eased to 3% YoY, below analysts’ estimates of 3.1%.

Brent crude is currently trading at $80.11 per barrel, down by 0.17% on the day.

While West Texas Intermediate crude (WTI) is trading at $75.69 per barrel, down by 0.12% on the day.

Oil prices have rallied by around 12% in two weeks, primarily in response to supply cuts from top producers Saudi Arabia and Russia, Craig Erlam, senior market analyst at OANDA, said, Reuters reported.

Markets expect one more interest rate rise before the U.S. rate-hiking cycle has likely peaked. Higher rates can slow economic growth and reduce oil demand.

In the latest insights on the supply-demand balance, a report by the International Energy Agency (IEA) on Thursday predicted oil demand would hit a record high this year, but that broader economic headwinds and interest rate hikes meant the increase would be slightly less than previously anticipated.

In China, momentum in the post-pandemic recovery slowed with exports contracting last month at their fastest pace since the onset of the pandemic three years ago, the country's Customs Bureau showed on Thursday.

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