Oil was steady ahead of US data on the energy outlook and stockpiles as the global market tightens amid OPEC+ supply cuts.
West Texas Intermediate traded near $82 a barrel after closing 1.1% lower on Monday. The Energy Information Administration will release its monthly Short-Term Energy Outlook later Tuesday, which will be followed by stockpile data for crude and gasoline from the industry-funded American Petroleum Institute.
Oil’s drive higher has gathered steam after Saudi Arabia and Russia pledged supply cuts to prop up the market, overshadowing persistent concerns around China’s economic recovery. The risk to Russian flows from the Black Sea remains in focus after escalating tensions over the weekend.
The International Energy Agency and OPEC will release reports later this week that will provide snapshots on the oil market. Investors will also be watching US consumer price index data on Thursday for clues on the path forward for monetary tightening. Interest-rate hikes have weighed on commodities.
“The crude oil market remains underpinned by ongoing supply concerns,” said Charu Chanana, a market strategist at Saxo Capital Markets Pte in Singapore, referring to reductions by Saudi Arabia and Russia. “Traders are also bracing for the CPI release on Thursday.”
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