Oil prices climb for the week, despite a small drop after US inflation data

Oil prices climb for the week, despite a small drop after US inflation data

Oil prices ended the week higher after a few weeks of decline. This increase happened despite a drop on Friday due to inflation data in the US. The data suggests the Federal Reserve won’t be cutting interest rates in the near future.

The oil market is calming down a bit. The recent price hikes weren’t just because of war worries, but also because oil supply is expected to be limited in the next few months.

Things could still get messy if the war in the Middle East escalates, but for now, oil prices are holding onto gains they made earlier in the week. This is despite some economic data in the US suggesting interest rates won’t be going down soon, which typically puts a damper on oil prices.

Oil prices climb for the week :  Analysts at StoneX caution that recent economic data, including higher inflation and a significant GDP miss, point towards a stagflationary environment. This, they warn, could push out expectations for an interest rate cut by the Federal Reserve, potentially dampening energy demand and impacting oil prices. The tepid GDP growth of 1.6% in Q1 2024 underscores these concerns.