• West Texas Intermediate dropped to near $79 a barrel after a volatile session on Monday. The US is looking to sell 26 million barrels from the Strategic Petroleum Reserve in accordance with a budget mandate enacted in 2015. The decline in crude comes ahead of the release of crucial US inflation data later Tuesday that’ll shape investor expectations for how high the Federal Reserve will push interest rates to bring too-hot inflation back under control.
• Oil has had choppy start to 2023 as traders attempt to price the demand impact of China’s re-opening, the supply curbs announced by Moscow, and persistent concerns that tighter US monetary policy may trigger a recession. At the same time, the Organization of Petroleum Exporting Countries and its allies have been pressing on with cutbacks in supply.