HomeIndustriesOil Extends Gain in Second Session Ahead of Inflation Data

Oil Extends Gain in Second Session Ahead of Inflation Data

Oil rose for a second session, continuing its reversal on a weekly loss, as investors await key U.S. inflation data to help them track the Federal Reserve’s monetary policy going forward.

West Texas Intermediate rose almost 2% from its previous session, now costing more than $76 per barrel. According to government data, U.S. crude inventories were sitting at 7.65 million barrels last week; the highest level since May 2021.

Investors are now awaiting the release of personal spending data later Friday, which they hope will indicate the direction in which the Federal Reserve’s interest rate policy will advance. According to the minutes of the central bank’s latest policy meeting, interest rate hikes are expected to persist.

While the prospect of an impending U.S. economic slowdown continues to concern investors, their confidence has been rebuilt by China’s economic rebound following the repealing of much of the nation’s Covid Zero regulations.

Still, Charu Chanana, a strategist at Saxo Capital Markets Pte believes that the current Chinese rebound is not sufficient to entirely overshadow U.S. economic concerns. “A more convincing pickup in Chinese activity is needed to lift oil higher,” she claimed.

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