Oil is getting cheaper on Monday after a strong growth in previous trading.
Data published in the U.S. on Friday pointed to the continuing high level of inflation in the country. This could prompt the Federal Reserve to raise interest rates to a greater extent, which will have a negative impact on the U.S. economy. A recession, in turn, would reduce demand for fuel, analysts said.
The quotations of April futures for Brent crude oil at London’s ICE Futures exchange fell by $0.29 (0.35%) to $82.87 per barrel by 6:59 a.m. on Tuesday. On Friday those contracts rose by $0.95 (1.2%) to $83.16 per barrel.
The price of WTI April futures on NYMEX fell by $0.2 per barrel to $76.12 in the morning. According to results of previous trades the cost of contracts grew by $0.93 (1.2%) to $76.32.
Brent added 0.2% and WTI 0.3% over the week.
The U.S. consumer price index (PCE) rose 0.6% in January from the previous month, the highest gain in six months, and rose 5.4% year over year, the Commerce Department said Friday. It was up 0.2% and 5.3% in December, respectively.
The PCE Core index, which excludes food and energy costs, rose 0.6% for the month (up 0.4% in December). In annual terms, the indicator, which the Federal Reserve closely monitors when assessing inflation risks, accelerated to 4.7% from 4.6% in December. At the same time analysts expected a less significant rise – by 0.4% and 4.3%, respectively.
