Oil prices dipped on Monday as investors await key economic data and a Fed meeting this week that could signal changes to interest rates. The declines come after a brief rise in prices last week following Saudi Arabia's pledge to further cut production.
Crude futures were down over 1% in early trading on Monday. Brent crude fell to $73.94 per barrel and WTI crude dropped to $69.36 per barrel.
Investors are watching to see if the Federal Reserve will signal a pause in interest rate hikes at its two-day policy meeting this week. The Fed's policy decisions impact the outlook for the global economy and oil demand.
While OPEC's production cuts provided price support last week, analysts remain cautious due to potentially higher supply from Russia, Iran and Venezuela. Goldman Sachs trimmed its 2024 oil price forecasts and raised its supply outlook due to expected higher output from these three countries.
In summary, a combination of pending inflation data and the Fed's next moves are prompting investors to take a wait-and-see approach for now, resulting in downward pressure on oil prices.
