Crude oil prices began the week with a loss, reversing the climb from last week after the latest U.S. inflation data suggested there will not be any rate cuts anytime soon. Signals from Israel that a ceasefire with Hamas is still a possibility also helped bring oil down, with Brent crude slipping below $89 per barrel in midmorning Asian trading and West Texas Intermediate at a bit over $83. On Friday, the Commerce Department reported an inflation rate of 2.
' What’s good for markets is not necessarily good for all markets because the prospect of continued elevated interest rates is normally taken as bearish for oil because higher rates make the U.S. dollar more expensive and most global oil is traded in dollars. These close ties between U.S. monetary policy and oil prices have traders acting promptly, as evidenced by the fact that every time a delay in rate cuts is announced prices decline.