Oil steadies near US$96 amid surging inflation and slowing demand
BNN Bloomberg
Oil ended the day little changed after a volatile session in which the latest US inflation report and data showing high prices hitting US fuel demand roiled prices.
West Texas Intermediate crude futures eked out a small gain to settle above US$96 a barrel. Government figures showing the highest inflation in decades and an unseasonable drop in gasoline demand capped market strength. US gasoline demand tumbled last week to 8.06 million barrels a day, lower than same week in 2020 and the lowest seasonally since 1996, according to the Energy Information Administration.
US consumer prices jumped in June by 9.1 per cent year-on-year, the largest gain in over four decades. Market participants fear the report will keep the Federal Reserve geared for another big interest-rate hike and lead to possible economic slowdown.
“The oil market might be tight, but high energy costs are clearly leading to crude demand destruction,” said Ed Moya, senior market analyst at Oanda Corp.
