Oil climbs as OPEC maintains estimates for global demand
Oil prices rose on Tuesday ahead of the Federal Reserve's policy decisions and following OPEC's monthly report.
In China, the world's largest crude consumer, the central bank cut short-term borrowing costs for the first time in ten months to boost the economy.
Markets await the Federal Reserve's decisions tomorrow, expected to hold interest rates unchanged, while the European Central Bank is expected to raise rates by 25 basis points on Thursday.
OPEC has maintained its expectations for growth in global demand on crude this year at 2.3 million bpd, while maintaining expectations for growth in supplies outside OPEC at 1.4 million bpd.
Average pricing for OPEC crude reached $75.82 a barrel in May, down $8.31 from April levels.
Otherwise, commercial crude stocks at OECD rose 30.2 million barrels on a monthly basis in April to 2.808 billion barrels, while US crude stocks rose 21.5 million barrels in May to 1.256 million barrels.
On trading, Brent crude futures due in August rose 3.4%, or $2.45 to $74.29 a barrel.
US crude futures due in July rose 3.4%, or $2.3 to $69.42 a barrel.
Wall Street gains ground as inflation slows down
US stock indices advanced after recent data showed a remarkable slowdown in inflation, which will likely convince the Federal Reserve to hold off policy tightening.
No Change Expected
The Federal Reserve will hold its two-day policy meeting later today to discuss market developments and policy decisions.
Most economists expect the Federal Reserve to hold interest rates unchanged this month.
The Fed is likely to maintain the status quo this month to assess the impact of of monetary policy on the overall economy following a rapid pace of rate hikes in recent months to control inflation.
Following the Fed's meeting, Chair Jerome Powell will issue his statements in a subsequent press conference to discuss the decisions and upcoming steps.
Analysts don't expect the Fed to cut interest rates this year as inflation continues to slow down, threatening a potential recession.
On trading, Dow Jones rose 0.4%, or 120 points to 34,185 as of 15:27 GMT, while S&P 500 climbed 0.3%, or 18 points to 4,357, as NASDAQ added 0.2%, or 33 points to 13,495.
Palladium climbs over 2% as dollar slips
Palladium prices rose on Tuesday as the dollar dipped against major rivals ahead of the Fed's meeting.
No Change Expected
The Federal Reserve will hold its two-day policy meeting later today to discuss market developments and policy decisions.
Most economists expect the Federal Reserve to hold interest rates unchanged this month.
The Fed is likely to maintain the status quo this month to assess the impact of of monetary policy on the overall economy following a rapid pace of rate hikes in recent months to control inflation.
Following the Fed's meeting, Chair Jerome Powell will issue his statements in a subsequent press conference to discuss the decisions and upcoming steps.
Analysts don't expect the Fed to cut interest rates this year as inflation continues to slow down, threatening a potential recession.
The dollar index fell 0.4% as of 15:10 GMT to 103.2, with a session-high at 103.6, and a low at 103.05.
Recent data showed US consumer prices slowed down sharply last month to two-year lows.
US consumer prices rose 4% in May, the lowest since March 2021, and below estimates of 4.1%, and down from 4.9% in the previous reading.
Core prices, excludsing food and energy, rose 5.3% y/y, matching expectations, and down from 5.5% in the previous reading.
On trading, palladium futures due in September rose 2.5% as of 15:13 GMT to $13,880 an ounce.
US consumer prices decline to two-year nadir
US consumer prices rose 4% in May, the lowest since March 2021, and below estimates of 4.1%, and down from 4.9% in the previous reading.
Core prices, excludsing food and energy, rose 5.3% y/y, matching expectations, and down from 5.5% in the previous reading.