Oil Prices Climb As Dollar Weakens Ahead Of US Inflation Report

Oil prices rose on Tuesday as focus shifted to U.S. inflation data and the OPEC’s monthly outlook report both due later in the day.

Rising speculation about the impact of Ukraine’s offensive around Kharkiv on supply of Russian oil and uncertainty about revival of the Iranian nuclear deal also supported prices.

Benchmark Brent crude futures rose 1.1 percent to $95.02 per barrel, while WTI crude futures were up 1.2 percent at $88.81.

The dollar was on the backfoot ahead of U.S. inflation data due later in the day that could show some signs of softening in August.

The U.S. inflation report is expected to show a continued slowdown in the annual rate of consumer price growth to 8.1 percent in August from 8.5 percent in July.

German harmonized inflation released earlier in the day was confirmed at 8.8 percent in August, unrevised from the preliminary reading.

Traders await the OPEC’s monthly outlook report for cues on global demand.

The oil producer group surprised markets with a small production cut last week while many expected the cartel to stay the course with its production policy.