WTI crude futures rebounded above $68 per barrel on Tuesday, after diving more than 4% in the previous session, supported by a weaker dollar while investors continue to monitor demand and supply. Data showed a bigger-than-expected fall in the US inflation rate, supporting the case for a pause in the Fed rate hiking campaign and hurting the dollar. The oil market has been under pressure after softer-than-expected economic data in the US and China fueled demand concerns in the world’s two biggest oil consumers. Still, OPEC left its forecast for 2023 global oil demand growth steady in June. On the supply side, Russian oil exports to China and India rose to record levels in May, offsetting Saudi Arabia’s intention to reduce output further in July. Goldman Sachs has downgraded its year-end price outlook for WTI crude again to $81 from $89, and that of Brent crude to $86 from $95, citing rising supply and waning demand.
