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.
