Oil edges higher but market wary of US inflation data

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Oil edged up today, a day after prices fell through $100 a barrel for the first time since April, but gains were limited by caution ahead of US inflation data that could weaken the market.

Brent crude futures were up 45 cents, or 0.5%, at $99.97 a barrel early this morning. US West Texas Intermediate crude gained 44 cents, or 0.5%, to $95.27.

A further concern is that US interest rate rises will push up the dollar, also undermining oil prices. Oil is generally priced in US dollars, so a stronger greenback makes the commodity more expensive to holders of other currencies, putting downward pressure on demand. Economists polled by Reuters expect the figures to show that US inflation has accelerated, to 1.1% monthly and 8.8% annually.

 

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