©Reuters.
Investing.com — Oil prices remained in a narrow range in early Asian trade on Tuesday, showing some pullback after supply disruptions in the U.S. and Russia caused big gains, while key economic indicators A sense of caution in the face of the pandemic also kept prices down.
Russia suspended operations at a major fuel export terminal following a suspected attack by the Ukrainian military, while several oil production plants in the United States suspended operations due to the severe cold wave.
The new supply disruption comes amid lingering geopolitical unrest in the Middle East, as the Israel-Hamas war intensifies and Iran-backed Houthis continue to attack shipping in the Red Sea.
This provided some support to oil prices on expectations that supply disruptions will cause market tightening in the coming months.
Prices expiring in March fell 0.1% to $80.0 a barrel and fell 0.1% to $74.58 a barrel by 8:06 p.m. ET. . Despite a tough start to the year due to persistent concerns about slowing demand, both were nearing their 2024 highs.
Demand concerns remain ahead of key economic data
However, concerns about sluggish crude oil demand remained, and the significant rise in crude oil prices was limited. Signs of a slowing economic recovery in the country's biggest importer have become a key issue in the oil market after China's fourth-quarter GDP data fell short of expectations.
Rising expectations that U.S. interest rates will rise for an extended period of time also weighed on oil markets, especially as the Federal Reserve added to the strength in oil prices.
All eyes will be on a series of key U.S. indicators released this week for further clues about the world's largest economy. is expected to be released on Thursday, and growth is expected to slow somewhat.
Statistics, the Fed's preferred measure of inflation, are expected to be released on Friday and show that inflation will remain sticky through December, providing further push for the Fed to keep interest rates steady for an extended period of time. It is expected that
A series of Purchasing Managers' Indices for several major economies are also expected to be released in the coming weeks, which are expected to show continued weakness in business activity around the world.
Before the economic data, traders need to navigate the 2018 and 2019 central bank meetings.
Traders were worried about a subsequent slowdown in oil demand, and worries about deteriorating global economic conditions amid high interest rates and stubborn inflation weighed heavily on oil prices.
Fuel demand has also declined in the United States due to the effects of the cold wave, and oil product inventories in the United States have recorded extremely large production volumes for three consecutive weeks.
Upgrade your investing with breakthrough AI-powered InvestingPro+ Stock Picking. Use coupon INVPRO2024 to take advantage of limited time discounts on Pro and Pro+ subscription plans. Click here for more information. Don't forget to use the discount code at checkout.
