On Thursday, oil prices fell, affected by US inflation data that hinted at a slowing economy potentially weakening oil demand, alongside a rise in OPEC’s oil production.
Brent crude for April dropped slightly to $83.62 a barrel, and US crude decreased to $78.26 a barrel.
The US PCE index for January met economist forecasts, suggesting a potential Federal Reserve interest rate cut by June.
John Kilduff from Again Capital LLC noted that mixed economic indicators support potential Federal Reserve rate cuts, which could initially boost oil demand.
However, the underlying economic slowdown could ultimately lower demand for oil.
A Reuters survey showed that OPEC’s production increased by 90,000 barrels per day (bpd) this month, reaching 26.42 million bpd.
Libya, in particular, saw a significant increase in its oil production, contributing to the overall rise in OPEC‘s output.
This scenario underscores how interconnected global economic indicators and oil production levels are with oil prices.
Central bank policies influence economic activity and oil demand, while OPEC’s production adjustments significantly impact global oil supply and prices.