Oil prices dip as OPEC cuts demand forecast, economic cues awaited
Investing.com-- Oil prices fell in Asian trade on Tuesday, reversing course from last week’s rebound as anticipation of a slew of economic cues this week sparked caution, while OPEC also cut its outlook on 2024 demand growth.
But overall gains were still held back by persistent concerns over demand, especially following weak economic prints from top importer China, and as traders also fretted over a U.S. recession.The Organization of Petroleum Exporting Countries said it expects oil demand to grow by 2.11 million barrels per day in 2024, down from earlier forecasts for growth of 2.25 million bpd.
The lower demand forecast raised doubts over just how much scope there was in the OPEC's plans to begin phasing out its production cuts. Monday's demand forecast cut comes just months before the cartel is set to meet and decide on the path of production in the coming months.Oil markets were also awaiting a string of key economic readings this week for more cues on growth and interest rates.inflation data is due on Wednesday and is widely expected to factor into the outlook for U.S. interest rates. Traders are pricing in either a 25 or 50 basis point rate cut by the Federal Reserve in September.
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