WASHINGTON (dpa-AFX) - Crude oil prices slipped on Monday as demand concerns triggered by the recent spike in producer price inflation in the U.S. weighed on market sentiment.
The hotter-than-expected producer price inflation readings from the U.S. released on Friday reinforced fears of the Fed rates remaining higher for longer. Producer prices for final demand increased 0.3 percent month-over-month in January as compared with a 0.1 percent decline in December. The biggest increase in five months also surpassed market forecasts of 0.1 percent.
The interest rate worries exacerbated the demand concerns spotlighted in the recent report by the International Energy Agency. The monthly report for February by the International Energy Agency had flagged the issue of global oil demand growth losing momentum.
The renewed concerns over demand also eclipsed the supply-related concerns brought to the fore by the geopolitical tensions in the Middle East.
Brent Oil Futures for April settlement is currently trading at $83.23, having slipped 0.29 percent from the previous close of $83.47. The day's trading ranged between $83.45 and $82.56.
West Texas Intermediate Crude Oil Futures for April settlement also declined 0.27 percent from the previous close of $78.46 to trade at $78.25. Prices ranged between a high of $78.46 and a low of $77.64.
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