Oil Price Rebounds Slightly as Market Awaits Crucial Inflation Data
The oil price rebounded slightly on Wednesday, tempering gains from stocks that rose after Tuesday's heavy losses. Brent crude edged up to $103.73 per barrel, while West Texas Intermediate increased to $89.70 per barrel.
The previous day saw both main crude contracts tumble due to lingering hopes for an agreement to end the US-Iran war and reopen the Strait of Hormuz. However, talks remain at a standstill with mixed messaging from both sides.
New Saudi Arabia pipeline capacity had been a key factor in oil shipments from the kingdom while Hormuz was blocked. The Trump administration ordered the release of more barrels from US emergency reserves.
Investors are awaiting crucial US inflation data later in the day, which could play a major role in the Federal Reserve's decision-making on interest rates next month. New York Fed chief John Williams expressed hope that policymakers may hold off on further rate hikes, stating 'there is no need for urgency' and time to gather more information.