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Oil stages rebound after dropping below $100 on demand worries

Oil prices rose on Wednesday after slipping below $100 per barrel as investors were worried about a global economic slowdown. Gold prices remained steady as investors awaited U.S. CPI data due later today.

Shreyansi Singh

Updated Jul 13, 2022, 15:31 IST

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KEY HIGHLIGHTS

Biden’s visit to the Middle East under the spotlight
All eyes on EIA supply report, U.S. inflation data

Oil prices staged a slight rebound after slipping below the $100 per barrel level for the first time since April, while a rise in U.S. inventories capped gains.

Markets also awaited U.S. inflation data due later in the day for cues on the state of the economy.

Investors scrambled to balance concerns about the health of the economy with tight supply in the oil market.

U.S. crude and product stocks rose, sources told Reuters citing American Petroleum Institute figures. Crude stocks were up by about 4.8 million barrels for the week ended July 8.

U.S. President Joe Biden is set to kick off his trip to the Middle East that is likely to see him pressure some Gulf allies to hike oil supply and provide some relief to consumers at gas pumps.

"We will convey our general view…that we believe that there needs to be adequate supply in the global market to protect the global economy and to protect the American consumer at the pump," White House national security adviser Jake Sullivan said.

Gold steady near 9-month low as investors await U.S. inflation data

Gold prices remained steady but hovered close to a more than nine-month low on Wednesday, as investors awaited U.S. inflation data for cues that could chart the path ahead for the Federal Reserve’s monetary policy.

The U.S. Labor Department's Consumer Price Index (CPI) is expected to have accelerated on both a monthly and annual basis.

The market expects the central bank to raise the interest rates by 75 basis points in its third consecutive rate hike at its July meeting.

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