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RIYADH: Oil prices fell on Tuesday, relinquishing some of the strong gains of the previous two sessions with the market cautious ahead of US inflation figures, which will be key to the Federal Reserve’s next interest rate decision.
The Brent crude price was down 64 cents, or 0.83 percent, at $76.37 at 2:00 p.m. Saudi time, while US West Texas Intermediate crude fell 65 cents, or 0.89 percent, to trade at $72.51.
Both contracts had settled more than 2 percent higher in the previous trading session.
US consumer price index figures for April are due on Wednesday.
The Fed raised rates last week in what may be the last hike of its tightening cycle. It dropped guidance about the need for future hikes, with inflationary pressure starting to ease.
OPEC+ voluntary cuts aimed to balance oil market: UAE energy minister
UAE Energy Minister Suhail Al-Mazrouei said on Tuesday that additional voluntary output cuts by the Organization of the Petroleum Exporting Countries, and its allies, known as OPEC+, were implemented to balance the oil market.
Mazrouei, who briefed reporters on the sidelines of the World Utilities Congress, said he was concerned about future supply shortages due to low investment.
“I’m not that worried about the very short term, I think we can manage balancing the supply with demand. I’m more worried about the level of investment required for years to come,” he said.
In a surprise move in early April, Saudi Arabia and other OPEC+ members announced further oil output cuts of around 1.2 million barrels per day.
The announcement helped push oil prices sharply higher, but those gains have since been erased as fears of a global economic slowdown spook investors.
China’s April crude oil imports drop to lowest since January
China’s crude oil imports fell in April to the lowest level since January, customs data showed on Tuesday, as high inventories, refinery maintenance and a weaker domestic economic rebound weighed on demand.
Crude imports in April totaled 42.41 million tons, or 10.3 million barrels per day, according to data from the General Administration of Customs. That was down 1.45 percent from the 10.5 million bpd of crude imported in April last year.
Imports in March had jumped 22.5 percent on last year to 12.3 million bpd — the highest level since June 2020.
(With input from Reuters)