Futures on US West Texas Intermediate Crude Oil retreated for a second straight trading day on Monday, as the US Dollar remained firm on prospects that higher-than-expected inflation could delay potential interest rate cuts by the Federal Reserve.
Markets are now expecting that the US central bank will not begin reducing interest rates until its policy meeting in June.
Higher-for-longer rate expectations underpinned the US Dollar, while pressuring dollar-priced commodities.
“Crude oil prices declined for want of fresh drivers,” ANZ analysts said in a client note, cited by Reuters.
“Oil has been caught between bullish factors such as lower OPEC output and elevated geopolitical risks and bearish concerns about weak demand in China.”
Meanwhile, market players are also closely watching the impact on Russia’s oil supply after US sanctions against tanker group Sovcomflot last week.
In other news, Goldman Sachs raised its summer peak price to $87 per barrel from $85 previously, as the group forecasts that oil demand will increase by 1.5 million barrels per day this year.
WTI Crude Oil Futures for delivery in April were last losing 0.56% to trade at $76.06 per barrel.
At the same time, Brent Oil Futures for May delivery were losing 0.41% on the day to trade at $80.47 per barrel.
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