Oil prices held steady at their highest levels in nearly four months in early Asia trade on Monday as Saudi Arabia and Russia extended production curbs, with traders shifting focus to key inflation data this week.
By 9:15 a.m. Bangkok time, Brent oil prices were hovering around $86.22 per barrel, while West Texas Intermediate crude futures were unchanged at $82.78 per barrel. Both contracts reached their highest point since early April.
Oil prices rose on expectations that a cut in Russian and Saudi Arabian output would offset any slowing in demand this year. Although economic data continued to depict a grim picture for China, a major oil importer, optimism was boosted by expectations of more stimulus measures from Beijing.
The markets are waiting for this week’s U.S. and Chinese inflation data. It is anticipated that consumer price inflation in the United States rose slightly in July, keeping it over the Federal Reserve’s goal range and possibly prompting it to take more hawkish steps.
But as the post-COVID economic boom runs dry, Chinese inflation is projected to have fallen further in July, signaling additional near-term weakening in the world’s top oil importer.
