Oil eases after bearish US economic data

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Oil prices eased today, reversing earlier gains, as US consumer prices unexpectedly rose in August, giving cover for the US Federal Reserve to deliver another hefty interest rate increase next week.

Brent crude was down 62 cents, or 0.7%, to $93.38 a barrel at 1407 GMT, while WTI crude fell 30 cents, or 0.3%, to $87.48 a barrel.

Fed officials are set to meet next Tuesday and Wednesday, with inflation way above the US central bank's 2% target.The number of trips taken over China's three-day Mid-Autumn Festival holiday shrank, with tourism revenue also falling, official data showed, as Covid-linked restrictions discouraged people from travelling.

"The oil market's structural outlook remains one of tightness, but for now, this is offset by cyclical demand headwinds," Morgan Stanley said in a note.

 

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