Oil gained more than 2% while waiting for the Fed to ease its monetary policy

The price of a barrel of oil went up again this Tuesday, April 11 in New York because of investor confidence in a decrease in inflationno, what It would make it easier for the US Federal Reserve (Fed) to soften its interest rate adjustments, which could in turn trigger a recovery in fuel demand.

The barrel of the WTI variety rose 2.1% and traded at $81.40; while the Brent rate gained 1.5% and settled at $85.50, according to figures reported on the New York Stock Exchange (NYSE).

The US inflation report to be released on Wednesday could help investors define what the Fed could do with interest rates.

Crude maintained its gains even after the US Energy Information Administration (EIA) estimated that there will be a lower production of hydrocarbons.

“Overall, we expect lower global production of liquid fuels this year than last month. However, lower production by Organization of the Petroleum Exporting Countries (OPEC) nations was partially offset by an increase of 300,000 barrels per day , for Russia’s liquid fuel production for the rest of this year,” the EIA said.

Despite the bearish government report, key market metrics indicate renewed strength following OPEC+’s announcement to cut its production.

OPEC+ decided a series of additional cuts to its production on April 3, and the EIA estimated that “as a result of the announcement, we reduced our OPEC production forecast by 500,000 barrels per day for the rest of 2023.”

Regarding the price outlook, the EIA noted that “The difference between futures for the last month of this year and 2024 rose to more than $5 a barrel, from $2.53 a barrel three weeks ago.”

Natural gas futures contracts rose 2.1% to settle at $2.22 per million BTU.

Gold eventually rallied and gained 0.8% to trade at $2,019 per ounce.