The American Petroleum Institute's data released on Tuesday showed that US inventories decreased by 5.5 million barrels over the week. Additionally, the Organization of the Petroleum Exporting Countries (OPEC) confirmed its forecast that global oil demand would increase by 2.25 million barrels per day in 2024. Along with conflicts in the Middle East, this continues to impact oil prices. In addition, upside potential remains limited due to concerns about an economic slowdown in China, the world's second-largest economy and the world's largest oil importer. Moreover, stronger-than-expected inflation data in the United States have fueled rumors that the Federal Reserve may postpone interest rate cuts. This would hinder economic activity and reduce oil demand. Considering these factors, bulls should be cautious. More broadly, it is clear that oil has been trading in a sideways range for a month now.
This indicates the indecisiveness of major players regarding the next directional movement. Consequently, it would be reasonable to wait for a new driver before choosing one or another trajectory. Today's macroeconomic calendar includes data on US inventories to be published during the North American session. This report may increase market volatility and budge crude oil prices.
