PREVIOUS TRADING DAY EVENTS 09 August 2023

Last week, the U.S. crude inventory data showed an increase of 5.9 million barrels. Oil climbed to high levels as the market dealt with supply tightness concerns and fuel demand worries ahead of the CPI data released today U.S. inflation data.

Brent crude rose by 0.3, to 87.81 USDb, hitting its highest since the 23rd of January. West Texas Intermediate WTI crude also gained 0.3, to 84.65 USDb, a price last seen in November 2022. 

Supply tightness due to tensions between Russia and Ukraine and the extended production cuts by Saudi Arabia are causing rising prices.

Oil prices have been resilient to a weak economic showing out of China in recent weeks, with market participants choosing to place their focus on the tighter supplies conditions from Saudi Arabia and Russias output cuts to continue their unwind from previous bearish positioning, wrote Yeap Jun Rong, a market analyst at IG, in a note.

Saudi Arabias plans were announced recently, involving the extension of its voluntary production cut of 1M barrels per day for another month to include September. Russia also said it will cut oil exports by 300K bpd in September.

The market has eyes on the Consumer Price Index CPI from the United States, which should provide further information to the Federal Reserve for making decisions regarding future monetary policy.

Ahead in the day oil investors will be widely watching the US Inflation print which is anticipated to reflect a…