Oil Holds Steady as Investors Look Ahead to US Inflation Report

(Bloomberg) -- Oil was little changed as traders wait to see if a week of key data inputs can break the market from its recent torpor.

Western Texas Intermediate futures held near $78 a barrel after earlier dropping to the lowest in two weeks. Investors are watching for a possible hotter-than-expected US inflation read on Tuesday, which could muddy the path for monetary policy. Monthly oil market reports from the IEA, OPEC and the US are also due this week.

Oil is coming off its least volatile week since late 2021 as the market juggles competing bullish and bearish factors. OPEC+ production cuts and Middle East tensions are being offset by rising supply from outside the group and persistent concerns around the economic outlook for top importer China.

“It has been popular to be sensibly concerned about the global economy, about oil demand, about OPEC+ resilience and about US shale oil discipline,” said Bjarne Schieldrop, chief commodities analyst at SEB AB.

Iran’s oil exports, meanwhile, have reached their highest level since 2018 — when former US President Donald Trump abandoned Tehran’s nuclear deal with world powers and reimposed sanctions — the country’s oil minister said.

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