Oil prices eased on Monday after rising 2% in the previous session, as investors focused on short-term demand concerns stemming from crucial upcoming U.S. inflation data and refinery maintenance in Asia and the United States.
Brent crude futures fell 74 cents, or 0.9%, to $85.65 a barrel by 0400 GMT after a 2.2% gain on Friday. U.S. West Texas Intermediate crude was at $78.99 a barrel, down 73 cents, or 0.9%, after rising 2.1% in the previous session.
“Crude prices are softening as energy traders anticipate a potentially weakening crude demand outlook as a pivotal inflation report could force the Fed to tighten policy much more aggressively,” said Edward Moya, senior analyst at OANDA, referring to U.S. consumer price data due on Feb. 14.
“This week could deliver a make or break moment in how bad of a recession Wall Street prices in.”
The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns that the move would slow economic activity and demand for oil.
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