WASHINGTON (dpa-AFX) - Oil prices were flat to slightly higher on Wednesday as the dollar rally paused after the release of softer-than-expected U.S. producer inflation data released overnight.
Benchmark Brent crude futures were marginally higher at $79.94 a barrel in European trade, while WTI crude futures edged up by 0.2 percent to $76.49.
The dollar's towering rally hit a speed bump as investors await the U.S. consumer price index (CPI) report for December 2024 later in the day for clues on the path of Federal Reserve policy.
Oil prices were also underpinned by expectations that the latest U.S. sanctions on Russia's oil trade could cause significant disruptions in Russia's oil supply and distribution.
In its monthly oil market report, the IEA maintained its supply forecasts for both Russia and Iran, citing an uncertain outlook regarding the full impact of these sanctions.
On Tuesday, the U.S. Energy Information Administration has predicted oil would come under pressure over the next two years as supply would outpace demand.
Meanwhile, data from the American Petroleum Institute has indicated that crude oil inventories declined by 2.6 million barrels for the week ending January 10. However, there was another steep build in refined products.
On the geopolitical front, Israel and Hamas are inching closer to reaching a ceasefire in Gaza. A deal is expected to be agreed upon shortly.
Copyright(c) 2025 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2025 AFX News
