Commodities
Oil Declines as US Inflation Data Remains Stubbornly Elevated
- West Texas Intermediate retreats to near $78 a barrel
- Some OPEC+ producers reportedly want output capacity upgraded
This article is for subscribers only.
Oil fell as US economic data showed inflation remains elevated, adding to bets the Federal Reserve won’t rush to cut interest rates this year.
West Texas Intermediate slid 1.4% to settle around $78 a barrel. Producer prices rose more than projected, though key components that feed into the Fed’s preferred inflation gauge were more muted. Federal Reserve Chair Jerome Powell said the central bank must wait for evidence that inflation continues to cool, doubling down on the need to keep borrowing costs elevated for longer. Traders will now look to consumer price data Wednesday for further clues on the policy trajectory.