Oil prices stabilized on Tuesday, retreating only slightly from the gains of the previous session due to escalating geopolitical tensions and expectations of improved fuel demand this summer, while investors await U.S. inflation data later this week. Oil and fuel inventories decreased, and gasoline demand increased as the United States, the world’s largest oil consumer, enters the peak consumption period in summer.
A preliminary survey conducted by Reuters on Monday showed that U.S. crude oil inventories are expected to decline by three million barrels in the week ending June 21. Gasoline inventories are also expected to decrease, while distillate inventories are likely to rise.
Attention is also directed towards the release of the Personal Consumption Expenditures (PCE) Index, the Federal Reserve’s preferred inflation measure, which will provide investors with guidance on how long the central bank might wait before cutting interest rates.
Delays in cutting interest rates in the United States could impede the economy and limit growth in fuel consumption.
