Oil prices were holding steady on Friday as investors awaited the release of key U.S. inflation data that could provide clues on future interest rate moves.
Brent crude oil, the international benchmark for Nigerian oil, which has risen by almost 6% this week was up by 0.2% at $79.45 a barrel, while West Texas Intermediate crude oil rose by 0.7% to $74.89.
Concerns about a full-blown global banking crisis have abated after banks in the U.S. and Europe were rescued, and oil prices have broadly recouped losses that followed the largest bank failures since the 2008 financial crisis.
Oil prices have also been supported by the shutdown or reduction of output at several oilfields in the semi-autonomous Kurdistan region of northern Iraq following a halt to the northern export pipeline.
Data has shown that U.S. crude oil stockpiles have fallen to a two-year low while China’s manufacturing activity rose in March.
Investors are now waiting for the U.S. personal consumption expenditures (PCE) figures due later today to decipher market direction. Economists polled by Reuters expect the core PCE index to ease to 0.4% in February from January and stay broadly steady on an annual basis at 4.7%.
On Thursday, the U.S. House of Representatives passed a bill intended to boost U.S. oil and gas production while scaling back climate initiatives.
Sources have suggested that with oil prices recovering from recent lows, the Organization of the Petroleum Exporting Countries and allies led by Russia are likely to stick to their existing deal to cut oil output at a meeting on Monday.
Investors will be closely monitoring the outcome of this meeting and any further developments that may impact oil prices.