Oil slumps 4% on China woes ahead of CPI, Fed

June 13, 2023 (MLN): Oil prices fell yesterday on rising global supplies and concerns about demand growth just ahead of key inflation data due later today (5:30pm PST) and a U.S. Federal Reserve meeting tomorrow.

China's ongoing problems remained a weight on the crude market as investors fret over the impact on demand, even after Saudi Arabia's surprise decision to slash output by a million barrels a day next month.

Brent crude fell $2.43, or 3.9%, to settle at $72.14 a barrel, it is down 15.63% year-to-date.

West Texas Intermediate (WTI) crude fell $3.1, or 4.23%, to settle at $67.41 a barrel, it is down 16.36% year-to-date.

Both contracts edged up Tuesday but made little headway into the 4% losses suffered the day before as Goldman Sachs slashed its price forecast for the third time in six months.

Market is expecting 4.1% YoY consumer price index (CPI) inflation as compared to 4.9% last month, and is in consensus (CME FedWatch Tool pricing in 83.8%) for a rate pause in tomorrow's meeting.

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