Oil steadies as market awaits key U.S. inflation data

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Brent crude gained 14 cents to $85.75 a barrel by 0917 GMT, while U.S. West Texas Intermediate rose 10 cents to $81.63

Oil prices steadied Wednesday as the market waited for U.S. inflation data later in the day that will likely influence the Federal Reserve’s policy on interest rate hikes.

Prices had risen about 2 per cent on Tuesday amid optimism that the U.S. Federal Reserve is getting closer to ending its cycle of interest rate hikes, making dollar-priced oil cheaper for buyers holding other currencies. Philadelphia Federal Reserve Bank President Patrick Harker said on Tuesday that he felt the U.S. central bank may soon be done raising interest rates, while Minneapolis Federal Reserve Bank President Neel Kashkari said he believed inflation, now at a rate of 5 per cent by the Fed’s preferred measure, will get to “the mid-threes” by the end of this year.

Meanwhile, data from the American Petroleum Institute showed crude inventories rose by about 380,000 barrels in the week ended April 7, sources said, against forecasts from eight analysts polled by Reuters for a decline of 600,000 barrels.

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