©Reuters.
Investing.com — Oil prices fell in Asian trade on Monday, trading sharply from the previous session as markets remain uncertain over demand, especially with long-term high U.S. interest rates. The decline widened.
All eyes will be on a series of key economic indicators this week, as well as further signals from the Federal Reserve on interest rate trends.
Concerns about slowing demand weighed heavily on oil prices last week, especially after hawkish signals from the Federal Reserve, sending oil prices down about 3% on Friday and also erasing all of this week’s gains.
Demand concerns far outweighed signs of continued geopolitical instability in the Middle East, which had provided some support for oil in early 2024, as markets worried about potential supply disruptions.
Prices expiring in April fell 0.5% to $81.24 a barrel and fell 0.4% to $75.75 a barrel by 8:14 p.m. ET. .
Tap on inflation, interest rate signals
Inflation statistics for several major countries, including Japan, Australia, the euro zone and the United States, are due to be released this week.
In the U.S., the Fed’s preferred inflation measure is expected to be released later this week and is expected to be factored into the central bank’s interest rate plans for the second half of 2024.
Traders appeared to be largely pricing in the possibility of rate cuts in May and June, with Fed officials warning there was no need to rush into cutting rates.
Additional comments from multiple Fed officials will be made public later this week.
US GDP and China PMI are awaited
This week’s focus will also be on second-quarter statistics for the fourth quarter in the United States, which are expected to reiterate that economic growth continues to outpace developed countries but is still decelerating from the previous quarter. Masu.
However, the country’s interest rates are expected to continue to grow at a robust enough level to remain high for an extended period of time.
Chinese figures are also expected to be released later this week and are expected to provide further clues about the slowing of the country’s economic recovery.
But a recent series of stimulus packages and signs of some improvement in consumer spending have raised hopes for a sustained economic recovery in the world’s largest oil importer.
