Zeynep Beyza Kilic
14 May 2024•Update: 14 May 2024
ANKARA
Oil prices declined on Tuesday amid a strong US dollar index and ahead of key US inflation data and speeches from Federal Reserve (Fed) officials.
International benchmark Brent crude traded at $83.16 per barrel at 11.19 a.m. local time (0819 GMT), a decline of 0.24% from the closing price of $83.36 per barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI) traded at $78.92 per barrel at the same time, a 0.25% fall from the previous session that closed at $79.12 per barrel.
Market players are awaiting inflation data from the US, the world's largest oil-consuming country.
US consumer short-term inflation expectations rose in April, according to a survey released Monday by the Federal Reserve Bank of New York.
The median one-year inflation expectation increased to 3.3% in April from 3% in March.
Analysts expect that the inflation increase projections and the cautious stance of US Federal Bank officials could negatively affect the risk appetite in global markets.
Fed Vice Chairman Philip Jefferson said interest rates should be kept at their current "restrictive" levels until there are signs of clear progress in reducing inflation.
Comments from Fed officials have weakened hopes of interest rate cuts in the country, fueling concern about a slowdown in economic growth and energy consumption.
The rise of the US dollar against other currencies aided the decline in oil prices. The US dollar index increased by 0.14% to 105.25, signaling reduced demand by making oil more expensive for foreign currency users.
Meanwhile, wildfires in Canada that are spreading toward oil and gas-rich regions in the country are threatening supply and limiting the fall in oil prices.
Last year, a daily production cut of 300,000 barrels emerged due to forest fires in Canada.
Market players are also awaiting the OPEC oil market report, scheduled for publication later in the day. The report is expected to reveal demand and supply data for this year and 2025.
