Oil Prices Dip on Macroeconomic Worries and OPEC+ Cuts

Oil prices retreated from a ten-week high due to profit-taking and concerns about the US and Chinese economies. The steepest drop in China's producer price index (PPI) since December 2015 raised concerns about the country's post-Covid recovery. However, ongoing OPEC+ efforts to tighten the physical market and the US Administration's plan to purchase oil for the Strategic Petroleum Reserve limited the decline. The market will closely watch the US Consumer Price Index report and OPEC and IEA's monthly reports later this week.