Home Forex WTI is in a tight range ahead of monthly oil agency reports, hovering around $77.80

WTI is in a tight range ahead of monthly oil agency reports, hovering around $77.80

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  • WTI price remains silent ahead of monthly market reports from OPEC, IEA and EIA.
  • The CME FedWatch Tool suggests a 68.9% chance of a rate cut in June.
  • The EIA reported that US oil production reached a record average production of 12.9 million barrels per day.

West Texas Intermediate (WTI) crude was trading around $77.80 a barrel during Asian hours on Tuesday. Oil markets remain muted pending the release of consumer price index (CPI) data from the United States (US). February US inflation data is expected to pick up slightly, although the annual index is expected to remain steady.

Strong CPI the report would likely reduce the likelihood of an immediate rate cut by the Federal Reserve (Fed), which could in turn strengthen American dollar (USD) and present challenges for oil prices. According to the CME FedWatch Tool, the probability of a rate cut fell slightly in June, now standing at 68.9%.

Market participants are also eagerly awaiting the release of monthly market reports from the Organization of the Petroleum Exporting Countries (OPEC), the International Energy Agency (IEA) and the Energy Information Administration (EIA). this weekin order to assess the global demand outlook.

ANZ analysts noted in a report that “crude oil remains in a narrow trading range as traders await demand projections from monthly reports issued by the three major oil agencies.” While they expect these projections to remain largely unchanged, any unexpected upward revisions would ease concerns about demand.

According to the Energy Information Administration (EIA), U.S. oil production topped world oil production for the sixth year in a row, reaching a record average production of 12.9 million barrels per day (bpd). US oil production rose to a new monthly record high of over 13.3 million barrels per day in December.

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