Oil Futures Rise on Lower-Than-Expected Inflation Feb. Data


   
   HOUSTON TX (DTN) -- The front-month NYMEX WTI and ICE Brent futures 
contracts climbed Wednesday morning in response to a lower-than-expected 
inflation increase in February, as the market awaits the release of OPEC's 
Monthly Oil Market Report today.

   The U.S. Bureau of Labor Statistics reported this morning that the U.S. 
consumer price index rose 0.2% in February, after an increase of 0.2% in 
January, bringing the annualized rate of inflation for the all-items index to 
2.8%. The data was below market expectations of a 3% rise.

   The energy index rose 0.2 % over the month, driven by an increase in the 
electricity and natural gas indexes, despite a decline in the gasoline index. 
The food index rose 0.2% in February, unchanged from the previous month, 
according to the BLS data.

   Market participants await today the release of OPEC's monthly report in 
which the cartel provides its views about global oil demand and their forecast 
for the oil industry.

   On March 3, the eight OPEC+ countries confirmed their December 2024 decision 
to proceed with a gradual and flexible output increase of 2.2 million bpd 
beginning April 1 while remaining adaptable to evolving conditions. In January, 
U.S. President Donald Trump asked Saudi Arabia and OPEC to raise oil output as 
he claimed that this would help to end the Russian-Ukraine war.

   Traders continue monitoring the developments of U.S. tariffs imposed on 
China, Canada, and Mexico, which had increased fears of a major impact on the 
global economic growth and the possibility of a recession in the United States.

   The NYMEX WTI futures contract for April delivery rose by $1.06 to   $67.31 
bbl while the ICE Brent futures contract for May delivery climbed by $0.96 to 
$70.52 bbl.  The April RBOB futures contract rose $0.0270 to $2.1320 gallon, 
while April ULSD futures rose $0.0180 to $2.2148 gallon settlement.

   The U.S. dollar index increased by 0.37% to 103.645 against a basket of 
foreign currencies.

    




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