Oil prices fell by about 0.2% after jumping more than 2.5% yesterday and reaching a one-week high. The fall in prices is due to partial profit-taking and correction of positions by investors ahead of tomorrow's publication of US inflation data and the Federal Reserve meeting.
The positive dynamics of the US currency also exerted some pressure on prices. The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.12% to 105.28 (the highest value since May 14).
Market participants are also being cautious ahead of the publication of Chinese data - tomorrow at 01:30 GMT, the consumer price index and the producer price index for May will be presented. According to forecasts, the rate of decline in producer prices slowed sharply - to 1.8% per annum from 2.5% per annum in April, while the consumer price index rose again by 0.3% per annum. Economists warn that if the PPI numbers disappoint, it suggests that the deflationary risk spiral remains entrenched in China which in turn may likely see less demand for oil.
Meanwhile, Saudi oil exports to China have fallen for the third month in a row, which also puts additional pressure on prices.