- Oil is trading higher and heading for the first weekly gain in two weeks
- US inflation data came in higher than expected, which could prompt the Federal Reserve to leave interest rates unchanged
- This has led to the US dollar trading higher
- US inflation data came in higher than expected, which could prompt the Federal Reserve to leave interest rates unchanged
- Asian refiners reducing throughput on weak diesel market (BBG)
- A sharp drop in diesel refining margins driven by weak diesel prices and demand has forced some refiners in Asia to cut their output
- The scale of the reductions is relatively small, but if margins do not improve, other refiners may be forced to reduce output as well
- Refiners have already been struggling with higher crude costs and geopolitical risks
- This could be a bearish factor for oil prices if margins do not improve
