Oil gains some support from US inflation data
Brent’s price has moved higher following the latest US inflation data released by the US Bureau of Labor Statistics (BLS).
IMAGE: Getty Images
The US inflation rate, based on the Consumer Price Index for all urban consumers (CPI-U), increased by 0.2% in October and November, after rising by 0.3% in September.
Oil prices have moved higher following the soft inflation data, as it boosts the likelihood of further interest rate cuts by the US Federal Reserve (Fed) in the upcoming year.
Lower interest rates in the US can support demand growth and make dollar-denominated commodities like oil less expensive for holders of other currencies.
On an annual basis, the US CPI advanced 2.7% last month, lower than the 3% growth seen in September.
The BLS did not release October’s year-on-year CPI data because of the US federal government shutdown at the time. The agency said it was unable to collect the required data for October 2025 “due to a lapse in appropriations.”
Notably, the US central bank remains focused on bringing inflation down to its 2% target.
“Financial markets turned risk-on after the US Thursday reported November CPI eased to 2.7% annual growth versus 3% in September,” VANDA Insights’ founder Vandana Hari remarked.
By Aparupa Mazumder
Please get in touch with comments or additional info to news@engine.online
