Oil trending down

Oil fell ahead of U.S. inflation data and reports from OPEC and the IEA that could provide clues about the demand outlook this week. Brent futures fell 1.1 percent on Friday to fall below $82 a barrel, while U.S. crude was below $78. Prices remain in a narrow trading range. Investors are eyeing warmer-than-expected U.S. inflation data on Tuesday, which could muddy monetary policy. Oil is on its least volatile week since late 2021 as the market is balanced by competing bullish and bearish factors. OPEC+ output cuts and Middle East tensions are offset by rising supply from outside the group and ongoing concerns about the economic outlook for top importer China. Investors are also eyeing stalled ceasefire talks between Israel and Hamas. Israel has threatened to occupy the southern Gaza city of Rafah if the talks fail, and U.S. President Joe Biden has warned that this would be a “red line.” The Organization of the Petroleum Exporting Countries is due to release its monthly market report on Tuesday, while the International Energy Agency will issue its outlook on Thursday. The U.S. Energy Information Administration is also due to release its Short-Term Energy Outlook this week. Meanwhile, Iran’s oil exports have reached their highest level since 2018, when former U.S. President Donald Trump abandoned Tehran’s nuclear deal with world powers and reimposed sanctions, the country’s oil minister said.