Oil Prices Edge Lower as Investors Monitor US Inflation and Price Cap on Russian Oil

Oil prices edged lower in the morning session of Asian trading hours on Monday after settling higher last week by 4% as investors await upcoming U.S. inflation data and details on Russian oil price cap.

The international benchmark Brent crude fell $1.37 or 1.48% to $91.47 per barrel. Meanwhile, the West Texas Intermediate dropped $1.44 or 1.66% to $85.35 per barrel.


The U.S. inflation data is expected to come out late tomorrow. The consensus expects U.S. headline inflation at 8.1% YoY and core CPI at 6.1% YoY in which headline would be lower than the previous month, but core inflation would be slightly higher.


Meanwhile, investors await further details on the curbing measure from G-7 nations to put a price cap on Russian oil to lower Moscow’s revenue recognition that it could use to fund the war in Ukraine. However, some experts said that a bigger coalition is required to make a clear impact on Russia.


Lastly, the lockdown in major cities in China could hamper demand for oil and economic activities in the world’s second largest economy.