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☆ Oil prices ease on fears of weaker demand
▼ + stars: | 2023-07-03 | by ( Emily Chow | ) www.reuters.com time to read: +3 min

"Hawkish commentary on rates continues to raise concerns of the demand outlook weighing on prices," National Australia Bank analysts said in a note. Higher interest rates could strengthen the greenback, making commodities more expensive for holders of other currencies, and also dampen oil demand. "OPEC+'s multi-output-cuts have kept oil prices above key levels, which may see a further production reduction by the cartel to keep the crude market's stability," said Tina Teng, an analyst at CMC Markets. However, the latest Reuters survey showed OPEC oil output has fallen only slightly in June as increases in Iraq and Nigeria limited the impact of cutbacks by others. U.S. crude output fell in April to 12.615 million barrels per day (bpd), its lowest since February, the U.S. Energy Information Administration said on Friday.

Persons: Brent, WTI, Tina Teng, Baker Hughes, Florence Tan, Emily Chow, Sonali Paul Organizations: PMI, SINGAPORE, U.S . Federal, Brent, . West Texas, National Australia Bank, P Global, Saudi, Petroleum Reserve, CMC, Organization of, Petroleum, U.S . Energy, Administration, Thomson Locations: China, Saudi, U.S, Saudi Arabia, OPEC, Iraq, Nigeria

☆ Oil prices slip on global economic slowdown fears
▼ + stars: | 2023-07-03 | by ( ) www.cnbc.com time to read: +2 min

Oil prices slipped in early Asian trade on Monday as global macroeconomic headwinds and possible further interest rate hikes from the U.S. Federal Reserves offset forecasts of tighter supplies amid OPEC+ cuts. Fears of a further slowdown hurting fuel demand grew after data on Friday showed U.S. inflation still outpacing the central bank's 2% target and stoked expectations it would hike interest rates again. Higher interest rates could strengthen the greenback, making commodities more expensive for holders of other currencies, and also dampen oil demand. However, the latest Reuters survey showed OPEC oil output has fallen only slightly in June as increases in Iraq and Nigeria limited the impact of cutbacks by others. U.S. crude output fell in April to 12.615 million barrels per day, its lowest since February, the U.S. Energy Information Administration said on Friday.

Persons: Brent, WTI, Caixin, Baker Hughes Organizations: U.S . Federal, Brent, . West Texas, National Australia Bank, Saudi, Petroleum Reserve, NAB, Organization of, Petroleum, U.S . Energy, Administration Locations: U.S, China, Saudi Arabia, Iraq, Nigeria

Hedge funds and other money managers sold the equivalent of 64 million barrels in the six most important petroleum-related futures and options contracts in the seven days ending June 27. Essentially all the sales were concentrated in crude contracts split evenly between Brent (-31 million barrels) and NYMEX and ICE WTI (-33 million barrels). Fund managers had accumulated 136 million barrels of gross short positions in NYMEX WTI, the most since 2017. The slump in WTI positions is likely being intensified by contract changes which have seen WTI crude grades added to the Brent futures contract. From a positioning perspective, extreme pessimism towards crude prices and lopsided positions are creating potential for an explosive rally in future.

Persons: Alexander Manzyuk, Brent, John Kemp, David Evans Organizations: REUTERS, OPEC ⁺, ICE, ICE WTI, Fund, Global, Thomson, Reuters Locations: Republic of Tatarstan, Russia, Saudi Arabia, Brent, NYMEX WTI, North America, Europe, China, U.S, Iran, Venezuela, distillates

☆ Here's what the latest OPEC+ oil cuts mean for 3 big U.S. energy holdings
▼ + stars: | 2023-07-03 | by ( Zev Fima | ) www.cnbc.com time to read: +4 min

A decision Monday by Saudi Arabia and Russia, the world's largest oil exporters, to cut production in an effort to push up oil prices is a bullish development for the Club's struggling energy holdings. Oil prices edged up Monday, with West Texas Intermediate crude — the U.S. oil benchmark — rising by 0.28%, to just under $71 a barrel. In this uncertain economic environment, the U.S. has repeatedly made clear its desire to keep oil prices lower. But if energy prices were to remain relatively suppressed, we would expect the year-to-date winners to continue their march higher, benefiting from more affordable oil prices. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.

Persons: Jim Cramer's, Jim Cramer, Jim, Simon Dawson Organizations: Organization of, Petroleum, West Texas, HAL, Natural Resources, Coterra Energy, U.S . Federal Reserve, CNBC, Saudi Aramco, Bloomberg, Getty Locations: Saudi Arabia, Russia, OPEC, U.S, Haliburton, China, Manifa

☆ Oil prices: Saudi Arabia and Russia curb oil supply again
▼ + stars: | 2023-07-03 | by ( Anna Cooban | ) edition.cnn.com time to read: +3 min

London CNN —Saudi Arabia and Russia announced Monday that they would make additional cuts to oil supply as a global economic slowdown hangs over the outlook for energy demand. Saudi Arabia — the world’s biggest exporter of crude oil — said it would extend a cut of 1 million barrels a day in its oil production at least until the end of August. The cut, which took effect on Saturday, was initially planned to last for the month of July in an attempt to shore up oil prices. The announcements sent prices for Brent crude, the global oil benchmark, up 0.7% to trade at $76 a barrel at 7.15 a.m. Taken together, the cuts will reduce Saudi Arabia’s total oil output to nine million barrels per day.

Persons: Alexander Novak, Brent, — Organizations: London CNN, Reuters, Brent, International Monetary Fund, Organization of, Petroleum, OPEC, Saudi Press Agency, Ministry of Energy, Saudi, P Global Locations: Saudi Arabia, Russia, Moscow, Ukraine, OPEC, Riyadh

Club stock Apple finished the second quarter with a 17.6% gain and the first half of the year with a 49% advance. Meta jumped 35% in the second quarter and 138% year to date. Estee Lauder lost 20% in the second quarter and nearly 21% year to date. The Dow Jones Industrial Average rose 3.4% in the second quarter and 3.8% for the year. But, it was the Nasdaq that outshined them all — soaring nearly 13% in the second quarter and almost 32% in the first six months of the year.

Persons: Meta, Estee Lauder, Locker, Wells, Morgan Stanley, —, Wells Fargo, Levi Strauss, LEVI, That's, Friday's, Gold, Jim Cramer's, Jim Cramer, Jim, Tim Cook, Josh Edelson Organizations: Federal Reserve, Nasdaq, Investors, Apple, Nvidia, Dow Jones, Federal, PMI, Independence, Modelo, Constellation Brands, U.S, Treasury, Jim Cramer's Charitable, CNBC, Apple's Worldwide, AFP, Getty Locations: U.S, Wells Fargo, Corona, Cupertino , California

☆ Brent oil set to notch first monthly gain this year on supply fears
▼ + stars: | 2023-06-30 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

June 30 (Reuters) - Brent crude oil prices were little changed in early trading on Friday, but were set to notch their first monthly gain this year as a steep drawdown in oil stocks and OPEC+ plans to cut output outweighed demand fears stemming from rising interest rates. Brent crude futures for September delivery fell 19 cents, or 0.3%, to $74.32 at 0015 GMT. Both benchmarks settled marginally higher on Thursday and were on track to gain more than 2% for the month. That followed Saudi Arabia's plans to cut its output by 1 million barrels per day from July and a broader OPEC+ deal to limit supply into 2024. U.S. oil rig count data, an indicator of future supply, will also be released later in the day.

Persons: Jerome Powell, Yuka Obayashi, Leslie Adler Organizations: Brent, . West Texas, U.S . Energy Information Administration, Federal, Thomson Locations: Saudi, OPEC, U.S

U.S. West Texas Intermediate crude (WTI) fell 5 cents or 0.1% to $69.81. While it would be Brent's first monthly gain for 2023, it would mark a second for WTI after a gain in April. Despite the probable monthly gain, on a quarterly basis, Brent looks set for a loss of about 6% while WTI appears headed for a decline of about 7%. The oil price gains on Friday were, however, capped by weak Chinese economic data and fears of higher interest rates. U.S. oil rig count data, an indicator of future supply, will be released later in the day.

Persons: Brent, WTI, Yeap, Rong, Novorossiisk, Robert Carnell, Jerome Powell, Arathy Somasekhar, Muyu Xu, Edwina Gibbs, Robert Birsel Organizations: Brent, . West Texas, U.S . Energy Information Administration, IG, ING, Federal Reserve, Thomson Locations: U.S, Saudi Arabia, That's, OPEC, Primorsk, Ust, Houston, Singapore

☆ Oil settles higher but posts fourth straight quarterly decline
▼ + stars: | 2023-06-30 | by ( ) www.cnbc.com time to read: +2 min

Oil pumpjacks are viewed in the Inglewood Oil Field in Los Angeles, California. Oil prices settled higher on Friday but posted their fourth straight quarterly loss as investors worried that sluggish global economic activity could crimp fuel demand. Signs of strengthening U.S. economic activity and sharp declines in U.S. oil inventories last week offered some support. The market was also supported by upward revisions in demand for crude oil and refined products in the United States. A Reuters survey of 37 economists and analysts showed oil prices will struggle for traction this year as global economic headwinds linger.

Persons: John Kilduff, Baker Hughes Organizations: Inglewood Oil Field, Brent, U.S . West Texas, U.S . Commerce, Federal Reserve, HSBC, Reuters Locations: Inglewood, Los Angeles , California, U.S, New York, United States, Saudi, OPEC, Saudi Arabia

☆ Oil ticks down on interest rate hike fears
▼ + stars: | 2023-06-29 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +2 min

Summary Rate hike expectations boost fears of slow economic growthWeak economic data in China weighs on sentimentHOUSTON, June 29 (Reuters) - Oil prices edged lower on Thursday, as fears that rising interest rates could dent global economic growth and crude demand offset a bigger-than-expected fall in U.S. inventories. Brent crude futures fell 38 cents, or 0.5%, to $73.66 a barrel by 1127 a.m. Investors were concerned about rising interest rates and economic growth after Federal Reserve Chair Jerome Powell reiterated that he expects the moderate pace of interest rate decisions to continue in the coming months. "Crude traders remain torn between rising interest rates with fears of a global recession against elevated travel demand and shrinking crude supplies," said Dennis Kissler, senior vice president of trading at BOK Financial. "The lack of prospects for fuel demand growth has limited the gain in oil prices, even with supply curbs by oil producers," said Tetsu Emori, CEO of Emori Fund Management Inc.

Persons: Jerome Powell, Dennis Kissler, Christine Lagarde, Tetsu Emori, Ahmad Ghaddar, Yuka Obayashi, Jason Neely, David Evans, Barbara Lewis, David Gregorio Our Organizations: Brent, . West Texas, U.S . Energy Information Administration, Investors, Federal Reserve, BOK Financial, European Central Bank, Emori Fund Management Inc, Thomson Locations: China, HOUSTON, European, Saudi Arabia, OPEC, London

TOKYO, June 29 (Reuters) - Oil prices eased on Thursday, paring some of the previous day's gains, as investors took profits on concerns that further interest rate hikes by central banks could dampen economic growth and global fuel demand. "The market turned around on renewed worries about further rate hikes in the U.S. and Europe, which will reduce global oil demand," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities. Leaders of the world's top central banks reaffirmed on Wednesday they think further policy tightening will be needed to tame stubbornly high inflation but still believe they can achieve that without triggering outright recessions. Adding to pressure, annual profits at industrial firms in China, the world's second-biggest oil consumer, extended a double-digit decline in the first five months as softening demand squeezed margins. Brent's six-month backwardation - a price structure whereby sooner-loading contracts trade at higher prices than later-loading ones - reached its lowest since December, indicating higher demand for immediate delivery.

Persons: paring, Hiroyuki Kikukawa, Jerome Powell, Christine Lagarde, Kikukawa, Yuka Obayashi, Sonali Paul Organizations: Brent, . West Texas, U.S . Energy Information Administration, NS, Nissan Securities, U.S . Federal, European Central Bank, Thomson Locations: TOKYO, U.S, Europe, China, United States

☆ Oil prices fall on concerns of slow fuel demand, weak China data
▼ + stars: | 2023-06-29 | by ( ) www.cnbc.com time to read: +3 min

Oil prices fell on Thursday, paring some of the previous day's gains, as investors took profits on concerns of further interest rate hikes dampening economic growth and global fuel demand while weak economic data in China also weighed on sentiment. "The market turned around on renewed worries about further rate hikes in the U.S. and Europe, which will reduce global oil demand," said Hiroyuki Kikukawa, president of NS Trading, a unit of Nissan Securities. Adding to pressure, annual profits at industrial firms in China, the world's second-biggest oil consumer, extended a double-digit decline in the first five months as softening demand squeezed margins. Brent's six-month backwardation - a price structure whereby sooner-loading contracts trade at higher prices than later-loading ones - reached its lowest since December, but still indicated higher demand for immediate delivery. "Behind the backwardation is the expectation that the immediate demand for fuels will stay firm as the United States has entered the driving season, but the global economy will slow down toward the second half of this year, reducing oil demand," NS Trading's Kikukawa said.

Persons: paring, Brent, Hiroyuki Kikukawa, Jerome Powell, Christine Lagarde, Tetsu Emori, Kikukawa Organizations: TotalEnergies, . West Texas, U.S . Energy Information Administration, NS, Nissan Securities, U.S . Federal, European Central Bank, Emori Fund Management Inc Locations: Leuna, Germany, China, U.S, Europe, Saudi Arabia, OPEC, United States

☆ Oil steadies after spiking on U.S. inventory fall
▼ + stars: | 2023-06-29 | by ( Ahmad Ghaddar | ) www.reuters.com time to read: +2 min

Brent crude futures was up 10 cents, or 0.1%, to $74.13 a barrel by 1032 GMT. Nonetheless, the impact that stocks have on oil prices was on display yesterday on a smaller scale," PVM Oil analyst Tamas Varga said. Concerns about the impact that rising interest rates will have on economic growth came back to the fore, however, halting the rally. Adding to pressure, annual profits at industrial firms in China, the world's second-biggest oil consumer, extended a double-digit decline in the first five months as softening demand squeezed margins. "The lack of prospects for fuel demand growth has limited the gain in oil prices, even with supply curbs by oil producers," said Tetsu Emori, CEO of Emori Fund Management Inc.

Persons: Tamas Varga, Jerome Powell, Christine Lagarde, Tetsu Emori, Yuka Obayashi, Jason Neely Organizations: Brent, . West Texas, U.S . Energy Information Administration, . Federal, European Central Bank, Emori Fund Management Inc, Thomson Locations: China, Saudi Arabia, OPEC

NEW YORK, June 28 (Reuters) - Oil prices climbed about 3% on Wednesday as the second straight weekly draw from U.S. crude stockpiles was bigger than expected, offsetting worries that further interest rate hikes could slow economic growth and reduce global oil demand. U.S. West Texas Intermediate (WTI) crude rose $1.86, or 2.8%, to settle at $69.56, narrowing Brent's premium over WTI to its lowest since June 9. The U.S. Energy Information Administration (EIA) said crude inventories dropped by 9.6 million barrels in the week ended June 23, far exceeding the 1.8-million barrel draw analysts forecast in a Reuters poll and also much bigger than the 2.8 million barrel draw a year earlier. This report could be a bottom (for oil prices)," said Phil Flynn, an analyst at Price Futures Group. Investors remained cautious that interest rate hikes could slow economic growth and reduce oil demand.

Persons: Brent, Phil Flynn, Jerome Powell, Flynn, Powell, Christine Lagarde, Gelber, Shariq Khan, Alex Lawler, Mohi Narayan, Emma Rumney, Mark Potter, David Gregorio, Cynthia Osterman Organizations: YORK, . West Texas, U.S . Energy Information Administration, Price Futures Group, Investors, . Federal, European Central Bank, Associates, Organization of, Petroleum, Thomson Locations: WTI, Russia, Saudi, China, Bengaluru, London, New Delhi

U.S. West Texas Intermediate (WTI) crude rose $1.63, or 2.45%, to $69.33. The U.S. Energy Information Administration (EIA) said crude inventories dropped by 9.6 million barrels in the week ended June 23, far exceeding the 1.8-million barrel draw analysts forecast in a Reuters poll and also much bigger than the 2.8 million barrel draw a year earlier. This report could be a bottom (for oil prices)," said Phil Flynn, an analyst at Price Futures Group. Investors remained cautious that interest rate hikes could slow economic growth and reduce oil demand. Analysts at energy consulting firm Gelber and Associates said that decline in backwardation suggested "diminishing worries over potential supply shortages."

Persons: Brent, Phil Flynn, Jerome Powell, Flynn, Powell, Christine Lagarde, Gelber, backwardation, Shariq Khan, Alex Lawler, Mohi Narayan, Emma Rumney, Mark Potter, David Gregorio Our Organizations: YORK, . West Texas, U.S . Energy Information Administration, Price Futures Group, Investors, . Federal, European Central Bank, Associates, Organization of, Petroleum, Thomson Locations: WTI, Russia, OPEC, Saudi, China, Bengaluru, London, New Delhi

NEW YORK, June 28 (Reuters) - Oil prices rose about 2% on Wednesday as a bigger-than-expected drop in U.S. crude stockpiles offset worries that further interest rate hikes could slow economic growth and reduce global oil demand. The U.S. Energy Information Administration (EIA) said crude inventories dropped by 9.6 million barrels in the week ended June 23, putting stockpiles down for a second week in a row. That was much bigger than the 1.8 million barrel draw analysts forecast in a Reuters poll and compares with a decline of 2.8 million barrels in the same week last year and a five-year (2018-2022) average decrease of 7.8 million barrels. This report could be a bottom (for oil prices)," Flynn said. Oil prices rose despite worries about interest rate hikes that could slow economic growth and reduce oil demand.

Persons: Brent, Phil Flynn, Flynn, Christine Lagarde, Shariq Khan, Alex Lawler, Mohi Narayan, Emma Rumney, Mark Potter Organizations: YORK, U.S, West Texas, U.S . Energy Information Administration, American Petroleum Institute, Price Futures, European Central Bank, Thomson Locations: Bengaluru, London, New Delhi

☆ Oil pares gains as rate hike fears offset US inventory drop
▼ + stars: | 2023-06-28 | by ( Alex Lawler | ) www.reuters.com time to read: +2 min

Benchmark Brent crude prices are down more than 15% this year as rising interest rates hit investor appetite, while China's economic recovery has faltered after several months of softer-than-expected consumption and other data. "For now, the market remains stuck with demand concerns weighing," said Ole Hansen, head of commodity strategy at Saxo Bank. "Overall, the commodity sector, including crude oil, is suffering from risk adversity amid China growth worries and U.S. data strength pointing to higher rates," he said. The Energy Information Administration's official supply report is due out at 1430 GMT. Higher interest rates can weigh on economic activity and oil demand.

Persons: Brent, Ole Hansen, Oil, Christine Lagarde, Tamas Varga, Mohi Narayan, Jason Neely, David Evans Organizations: Oil, Brent, U.S, West Texas, Saxo Bank, American Petroleum Institute, Energy, European Central Bank, ECB, PVM, Saudi, Thomson Locations: contango, China

☆ Oil rises on large US stock draws, but rate hike fears linger
▼ + stars: | 2023-06-28 | by ( Mohi Narayan | Thomson Reuters | Reports On Everything How Asia S Fuel Use Recovers The Fallout Of To Tracking How The Global Energy Transition Impacts Refinery Expansion Plans | ) www.reuters.com time to read: +3 min

June 28 (Reuters) - Oil prices edged higher on Wednesday after industry data showed a larger-than-expected drawdown of U.S. inventories, signalling robust demand from the world's biggest oil consumer, but the gains were limited by worries over interest rate hikes. Both contracts had fallen by about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. "Tuesday's slump took Brent and WTI close to support levels that have held through the price dives of the past couple of months," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Higher interest rates can weigh on economic activity and oil demand. Analysts said that markets have struggled to shake off fears that higher interest rates will weigh on global growth and oil demand.

Persons: Brent, WTI, Vandana Hari, Hari, Christine Lagarde, Mohi Narayan, Arathy Somasekhar, Muralikumar Anantharaman, Jamie Freed, Gerry Doyle Organizations: Brent, U.S, West Texas, Vanda Insights, American Petroleum Institute, Analysts, European Central Bank, Federal Reserve, National Australia Bank, Thomson Locations: Saudi, China

☆ Oil ticks up as drop in US crude and gasoline stocks exceeds view
▼ + stars: | 2023-06-28 | by ( Arathy Somasekhar | ) www.reuters.com time to read: +1 min

June 28 (Reuters) - Oil prices edged higher on Wednesday as markets worried about supply tightness in the U.S., the world's biggest oil consumer, after data showed a larger-than-expected draw in its crude and gasoline inventories. Both contracts had fallen about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. That comes after a clash between Moscow and Russian mercenary group Wagner led to concern about possible oil supply disruptions and as markets await Saudi Arabia's pledged oil output cut from July. A rise in U.S. consumer confidence in June also worried markets that the Federal Reserve will likely have to continue raising interest rates. Markets also awaited data due on Wednesday on China's industrial profits to gauge the strength of the world's second-biggest economy.

Persons: Wagner, Christine Lagarde, Arathy Somasekhar, Muralikumar Organizations: Brent, U.S, West Texas, American Petroleum Institute, Analysts, Saudi, European Central Bank, Federal Reserve, Thomson Locations: U.S, Moscow, Russian

☆ Oil higher on large US stock draws, but rate hike fears linger
▼ + stars: | 2023-06-28 | by ( Mohi Narayan | Thomson Reuters | Reports On Everything How Asia S Fuel Use Recovers The Fallout Of To Tracking How The Global Energy Transition Impacts Refinery Expansion Plans | ) www.reuters.com time to read: +3 min

June 28 (Reuters) - Oil prices edged higher on Wednesday after industry data showed a larger-than-expected drawdown of U.S. inventories signalling robust demand from the world's biggest oil consumer, but the gains were limited by worries over interest rate hikes. Both contracts had fallen by about 2.5% in the previous session on signals that central banks may not be done with interest rate hikes. "Tuesday's slump took Brent and WTI close to support levels that have held through the price dives of the past couple of months," said Vandana Hari, founder of oil market analysis provider Vanda Insights. Higher interest rates can weigh on economic activity and oil demand. Analysts said that markets have struggled to shake off fears that higher interest rates will weigh on global growth and oil demand.

Persons: Brent, WTI, Vandana Hari, Hari, Christine Lagarde, Mohi Narayan, Arathy Somasekhar, Muralikumar Anantharaman, Jamie Freed Organizations: Brent, U.S, West Texas, Vanda Insights, American Petroleum Institute, Analysts, European Central Bank, Federal Reserve, National Australia Bank, Thomson Locations: Saudi, China

☆ Analysis: Contrarians bet U.S. energy shares will shake doldrums in 2023's second half
▼ + stars: | 2023-06-28 | by ( David Randall | ) www.reuters.com time to read: +4 min

That has hurt shares of energy companies: after soaring in 2022, the S&P 500 energy sector (.SPNY) has lost nearly 10% this year, making it the index’s worst performing sector. Most investors believe central bank interest rate hikes to fight inflation should keep a lid on global growth for the time being. Yet some are positioning for a rebound in energy shares, drawn by attractive valuations and signs the U.S. will continue to stave off an economic downturn. Stan Majcher, a portfolio manager at Hotchkis & Wiley, is among those counting on oil prices rebounding due to tight supply. “If you don’t get it, the path of least resistance is for oil prices to move much higher," he said.

Persons: Brent, David Lefkowitz, Baker Hughes, Stan Majcher, Refinitiv, Charles Lemonides, Sam Peters, David Randall, Lewis Krauskopf, Ira Iosebashvili, David Gregorio Our Organizations: YORK, UBS Wealth Management, UBS, Federal Reserve, TD Securities, . West Texas, Brent, U.S, drillers, Hotchkis, Wiley, Kosmos Energy Ltd, Bank of America Survey, Hess Corp, Occidental Petroleum Corp, ClearBridge Investments, Thomson Locations: U.S, China, Saudi Arabia

☆ Oil ticks up as drop in U.S. crude and gasoline stocks exceeds view
▼ + stars: | 2023-06-28 | by ( ) www.cnbc.com time to read: +1 min

Oil rig and pump of H&P Rig 488 in Stanton, Texas, on June 8, 2023. Oil prices edged higher on Wednesday as markets worried about supply tightness in the U.S., the world's biggest oil consumer, after data showed a larger-than-expected draw in its crude and gasoline inventories. That comes after a clash between Moscow and Russian mercenary group Wagner led to concern about possible oil supply disruptions and as markets await Saudi Arabia's pledged oil output cut from July. A rise in U.S. consumer confidence in June also worried markets that the Federal Reserve will likely have to continue raising interest rates. Markets also awaited data due on Wednesday on China's industrial profits to gauge the strength of the world's second-biggest economy.

Persons: Wagner, Christine Lagarde Organizations: Brent, U.S, West Texas, American Petroleum Institute, Analysts, Saudi, European Central Bank, Federal Reserve Locations: Stanton , Texas, U.S, Moscow, Russian

Oanda analyst Craig Erlam said prices were mainly at the mercy of "the ever-changing expectations for interest rates". European Central Bank President Christine Lagarde said on Tuesday that stubbornly high inflation will require the bank to avoid declaring an end to rate hikes. Higher interest rates can weigh on economic activity and oil demand. But the upbeat data suggested the Federal Reserve will likely have to continue raising interest rates to slow demand in the overall economy. The U.S. central bank, which has raised its policy rate by 500 basis points since March 2022, signaled this month that two additional rate hikes were warranted this year.

Persons: Brent, Craig Erlam, Christine Lagarde, Phil Flynn, Wagner, PVM's Tamas Varga, Saudi Arabia's, Li Qiang, Stephanie Kelly, Shadia Nasralla, Trixie Yap, Jan Harvey, David Goodman, Ed Osmond, Deepa Babington, Mark Heinrich Our Organizations: Brent, . West Texas, European Central Bank, Price Futures, Reserve, American Petroleum Institute, Reuters, Saudi, Thomson Locations: contango, Europe, United States, U.S, Russia, China

SummarySummary Companies Oil price structure implies demand bulls are retreating2-mth Brent spread in contango, implying oversupply concernECB poised for further rate hikesLONDON, June 27 (Reuters) - Oil prices slipped on Tuesday ahead of data shedding light on U.S. appetite for fuel during the summer driving season, with the Brent benchmark's price structure indicating bulls are retreating. U.S. inventory data from the American Petroleum Institute industry group is expected after 2000 GMT, followed by government data on Wednesday. For the two-month spread , the market is in shallow contango, the opposite price structure, indicating traders are factoring in a currently slightly oversupplied market. The oil market has shrugged off a clash between Moscow and Russian mercenary group Wagner which was averted on Saturday. Russian oil loadings have kept on schedule.

Persons: Brent, Craig Erlam, Christine Lagarde, Wagner, PVM's Tamas Varga, Saudi Arabia's, Premier Li Qiang, Trixie Yap, Jan Harvey, Louise Heavens Organizations: Brent, U.S, West Texas, Central Bank, American Petroleum Institute, Reuters, Saudi, Premier, Thomson Locations: contango, U.S, Moscow, Russian, China

Summary Oil prices rise early in second sessionPolitical instability in Russia adds to supply concernsHopeful expectations for summer driving season demand remainJune 27 (Reuters) - Oil prices edged higher on Tuesday, spurred by worries about political instability in Russia and possible supply disruptions, as well as U.S. demand hopes ahead of the summer driving season. Following the weekend's events, ANZ analysts said, the complacency among traders about Russian oil continuing to seep into the international market could no longer be assumed to the same extent. The challenge has fed questions about President Vladimir Putin's grip on power and some concern about possible disruption of Russian oil supply, although loadings have kept on schedule. Oil fell about 3.6% last week on worries that further interest rate hikes by the U.S. Federal Reserve could sap demand as China's economic recovery disappoints investors. Traders were also watching for signs of a pickup in demand for transport fuels, such as gasoline, in the United States ahead of the peak summer driving season.

Persons: Brent, Wagner, Vladimir Putin's, Saudi Arabia's, Morgan, Stephanie Kelly, Trixie Yap, Muralikumar Anantharaman, Clarence Fernandez Organizations: Brent, U.S, West Texas, ANZ, Saudi, BMI Research, U.S . Federal, Traders, American Automobile Association, Global, American Petroleum Institute, Energy Information Administration, Thomson Locations: Russia, Moscow, Russian, Rostov, Saudi Arabia, United States, U.S

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