Brent above $80 for first time amid mild US inflation

Oil drilling rigs

Oil prices settled higher today, July 12, amid expectations for tighter supplies and a slower-than-expected US inflation.

The Energy Information Administration (EIA) cut expectations for the US crude oil production by nearly 50,000 barrels per day (bpd) for 2023, after OPEC extended output cuts to 2024. Crude oil production is expected to rise 670,000 bpd to 12.56 million bpd this year, less than a prior forecast calling for a gain of around 720,000 bpd/ Meanwhile, the US crude oil gained 5.9 million barrels last week, beating expectations of an increase of 483,000 barrels.

Stripping out volatile food and energy prices, core consumer price index (CPI) rose 4.8% from a year ago and 0.2% on a monthly basis, according to the latest data released by the Bureau of Labor Statistics.

Brent crude for September delivery added 0.9%, or 71 cents, to $80.11 a barrel, closing above $80 for the first time since April 24, when it reached $81.76 a barrel.

WTI for August delivery rose by 1.2%, or 92 cents, to $75.75 a barrel, breaking above $75 for the first time since the May 1 settlement at $75.15.