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Oil Set for Weekly Gain as Markets Eye US Inflation Data

4 weeks ago

Oil prices are poised for a weekly uptick as investors await crucial US inflation data, which is expected to provide insights into the trajectory of monetary policy, thereby influencing risk appetite across various asset classes, including commodities like crude oil. The Federal Reserve’s favored inflation indicator is scheduled for release later on Friday, following recent data indicating a slowdown in US economic growth. Despite this deceleration, other measures of price increases in the US have remained higher than anticipated, raising questions about the timing of potential rate cuts.

Market focus is anticipated to remain fixated on macroeconomic indicators, with particular attention on any further acceleration in prices, which could cloud the outlook for demand. Additionally, concerns stemming from weak US GDP figures have fueled apprehensions about stagflation, further adding to market uncertainty. The core Personal Consumption Expenditures (PCE) deflator, a key inflation metric closely monitored by the Fed, is also set to be unveiled later on Friday. While the Fed aims for a sustained decrease in inflation, investors are keen to see signs of economic growth and corporate profitability on the rise.

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