Oil falls in price after the publication of data on inflation in Europe

The price of oil fell sharply on Wednesday, reaching lows since the end of March in the area of $82.40 per barrel. Pressure on the quotes was exerted by the publication of inflation statistics in the UK and the eurozone. 

Annual inflation in the UK slowed to 10.1% in March from 10.4% a month earlier. Analysts had expected a slowdown to 9.8%. Consumer prices in the eurozone increased by 6.9% year-on-year, the lowest pace since February 2022. The February figure is 8.5%. 

Also, the oil market is showing a decline amid concerns about the uneven recovery of global demand and the influx of Russian oil to the already well-endowed Asian market. Experts note that refineries in Asian countries are considering reducing production, as profits from refining oil into diesel fuel are falling, and time spreads for the reference grade of oil in Dubai are decreasing. 

In addition, oil quotes are affected by the situation on the global financial market. In the near future, the central banks of the largest countries will hold meetings to assess the prospects for further tightening of monetary policy. 

Investors are also waiting for data on commercial oil reserves in the United States. The Ministry of Energy of the country will publish official statistics on Wednesday evening – it is expected that the decrease in reserves will amount to 1.1 million barrels. In the previous week, inventories increased by 0.6 million barrels.