|
Brent futures for June were down 21 cents, or 0.2%, to $89.81 a
barrel at 0915 GMT, while U.S. crude futures for May were down
19 cents, or 0.2%, to $85.17 a barrel.
Oil prices have softened so far this week as economic headwinds
curb gains from geopolitical tensions, with markets eyeing how
Israel might respond to Iran's weekend attack.
Analysts do not expect Iran's unprecedented missile and drone
strike on Israel to prompt dramatic sanctions on Iran's oil
exports from the United States.
"Oil prices go about their business of unwinding some of the war
premium that has been priced-in," said John Evans at oil broker
PVM, adding that they also faced "a setback in interest rate cut
hopes".
Top U.S. Federal Reserve officials including Chair Jerome Powell
backed away on Tuesday from providing any guidance on when
interest rates may be cut, dashing investors' hopes for
meaningful reductions in borrowing costs this year.
Britain's inflation rate slowed by less than expected in March,
signaling that a first rate cut by the Bank of England could
also be further off than previously thought.
However, inflation slowed across the euro zone last month,
reinforcing expectations for a European Central Bank rate cut in
June.
"A build-up in U.S. crude inventories overnight and a mixed set
of economic data out of China also offered some reservations,
alongside near-term overbought technicals which prompts some
profit-taking," said IG market strategist Yeap Jun Rong.
In China, the world's biggest oil importer, the economy grew
faster than expected in the first quarter, but several other
indicators showed that demand at home remains frail.
U.S. crude inventories rose by about 1.4 million barrels last
week, according to a Reuters poll. Official data from the Energy
Information Administration, the statistical arm of the U.S.
Department of Energy, is due on Wednesday at 10:30 a.m. (1430
GMT). [EIA/S]
Elsewhere, Tengizchevroil announced plans for scheduled
maintenance at one of six production trains at the Tengiz
oilfield in Kazakhstan in May.
(Reporting by Deep Vakil in Bengaluru, additional reporting by
Ahmad Ghaddar in London, Yuka Obayashi in Tokyo and Trixie Yap
in SingaporeEditing by Mark Potter)
[© 2024 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
