Oil Prices Dip Amid Rising U.S. Inflation and Steady OPEC Demand

Oil prices fell early Tuesday following a report that U.S. inflation increased more than anticipated, diminishing prospects for a reduction in U.S. interest rates. Meanwhile, OPEC maintained its positive demand forecast for 2024.

West Texas Intermediate crude for June delivery decreased by $0.47 to $78.65 per barrel, and July Brent crude, the international standard, dropped by $0.46 to $82.90.

The U.S. Bureau of Labor Statistics reported that the producer price index (PPI) for April rose by 0.5% from March, a higher increase than the previous month's 0.3% and surpassing the predicted 0.3%. The core PPI, which excludes food and energy, climbed 0.4%, exceeding both the previous month's 0.2% and the anticipated 0.2%.

This data, indicating that U.S. prices are continuing to rise beyond the Federal Reserve's 2% target, lessens the likelihood of a rate cut from the current 23-year highs before the end of the year. The U.S. consumer price index for April, expected to show a 3.4% annual increase down from 3.5% in March, will be released on Wednesday.

The price already dropped as we mentioned in the previous idea, and still trading at the bearish zone to reach 75.35.
so the bearish trend suggestion will continue as long as trades under 78.78 toward 76.60 and 75.35
the price will move between 80.73 and 75.35 for this week


Pivot line: 78.78
Support lines: 76.60, 75.35, 69.78
Resistance lines: 80.73, 82.24, 83.75

previous idea:

Comment:

Still running in the same scenario...

Trade active:

The price still active in the bearish direction toward 75.35 as long as trades under 80.73