Oil slips toward $90 a barrel as investors await US inflation data
Brent trades at 90.35, down 2.40%, and WTI at 85.08, down 1.50%, while global stocks rise ahead of the US October CPI report due at 13:30 UTC.
- 01Brent crude stands at 90.35, down 2.40% from the previous close of 92.57.
- 02WTI crude stands at 85.08, down 1.50% from the previous close of 86.38.
- 03Benchmark oil briefly fell below $90 for the first time since August, and stocks rose across the globe.
- 04US October annual headline CPI is due at 13:30 UTC, with a 3.9% estimate.
Oil prices fell on Tuesday, with Brent crude at 90.35, down 2.40% from the previous close of 92.57. WTI crude stood at 85.08, down 1.50% from 86.38.
What happened
Benchmark oil briefly dropped below $90 a barrel on Tuesday, the first time since August. Stocks rose across the globe as crude eased.
The move followed comments from Trump on Iran, which were reported alongside the drop in crude. Brent, the international benchmark, lost 2.22 from the previous close. WTI, the US benchmark, lost 1.3, a decline of 1.50%.
Brent fell more than WTI in percentage terms. The latest levels stood at 90.35 for Brent and 85.08 for WTI.
Nvidia shares were also on course to recover some of their earlier losses, according to market coverage on Tuesday morning. Investors were waiting for the consumer price report before taking a firmer direction.
Why it matters
Oil is a direct input to energy costs and consumer prices, so its direction matters ahead of an inflation report. A lower crude price can ease pressure on headline inflation, though the October data will reflect the month that has already passed.
The US consumer price report is due at 13:30 UTC. Annual headline inflation for October has an estimate of 3.9%, against a previous reading of 3.7%. Annual core inflation has an estimate of 2.8%, against a previous reading of 2.6%.
On a monthly basis, headline inflation has an estimate of 0.3%, against a previous 0.6%. Core monthly inflation has an estimate of 0.2%, against a previous 0.3%.
For investors, the combination of lower oil and a pending inflation print keeps attention on how energy prices and consumer prices interact across equity and commodity markets.
What to watch next
The October CPI release is the next scheduled event. Beyond the annual and monthly rates, the index level is also due: the estimate for the inflation rate index is 337.02, against a previous 336.94. The seasonally adjusted CPI has an estimate of 337, against a previous 336.3.
Markets will also track whether oil holds below the $90 mark that benchmark crude briefly crossed, and whether further comments on Iran move prices. Stocks, which rose globally in early trading, will react to the inflation figures once they are published.
Sources:UCapital Markets (ucapital.com)Wall Street Journal (wsj.com)Wall Street Journal (wsj.com)
UCapital24 S.p.A. or group companies may have commercial relationships with the companies mentioned. This content is not financial advice.
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