Tuesday saw a hold on the $90 per barrel mark for Brent oil futures as traders awaited macroeconomic data that could hint at future increases in rates of interest in the US and Europe.
At 0630 GMT, November Brent crude prices were up 22 cents to $90.86 per barrel, while October West Texas Intermediate crude futures were up 29 cents to $87.58.
After Russia and Saudi Arabia declared they would continue their voluntary supply cutbacks of a combined 1.3 million barrels per day through the end of the year, Brent last week hit $90 a barrel for the very first time in ten months.
According to Tina Teng, a markets analyst from CMC, investors will be keeping an eye on the US consumer price index data for August, which is scheduled for release on Wednesday and may possibly influence how much higher interest rates rise in the biggest economy and largest oil user in the world.
Although there is disagreement over whether the Federal Reserve will raise or hold interest rates steady again in November, it is widely expected to keep interest rates unchanged at its policy meeting next week.
The medium-term forecast for oil stays bullish, with China showing better economic data, said Teng, who also noted that the OPEC+ supply cuts are a major driver of the market's rising momentum.
The European Central Bank's decision on interest rates will be made public on Thursday, which will be informative for the oil markets. The euro zone's growth in 2023 and 2024 would likely be slower than initially anticipated, according to a prediction released by the European Commission on Monday.
Investors also anticipated US crude stock data, which was scheduled to be released at 2030 GMT on Tuesday. A poll indicated that the week ending September 8 was likely to see a decrease in crude stockpiles of approximately 2 million barrels.
Due to weak macroeconomic conditions, the International Energy Agency last month revised down its 2024 growth in oil demand prediction to 1 million barrels per day. In contrast, the Organization of the Petroleum Exporting Countries report from August did not revise its prediction for 2024 of a 2.25 million barrels per day demand increase. Monthly reports will be released by both in this week as well.