West Texas Intermediate (WTI), futures on NYMEX, extend its correction to near $81.00 in Tuesday’s early American session. The Oil price faces selling pressure as supply concerns ease after meteorological department showed that the Hurricane Beryl weakened into a tropical storm after hitting the Texas coast.

Before that, major oil-shipping ports near the Gulf of Mexico, such as Corpus Christi, Galveston, and Houston, were shut to any major damage to infrastructure from Hurricane Beryl.

On the geopolitical front, rising expectations of a ceasefire between Israel and Palestine have also eased risks of supply chain disruptions.

Meanwhile, investors await the Federal Reserve (Fed) Chair Jerome Powell’s semi-annual Congressional testimony, which is scheduled at 14:00 GMT. Investors will look for cues about when the Fed will start reducing interest rates this year. Powell is less likely to provide a concrete timeframe for rate cuts as policymakers doubt whether the disinflation process has resumed after stalling in the first quarter.

This week, investors will keenly focus on the Consumer Price Index (CPI) reports from China and the United States (US), which will be published on Wednesday and Thursday, respectively.

The Oil price will be significantly influenced by the China’s inflation data as the nation is world’s largest importer of Oil. China’s annual consumer inflation is expected to grow at a faster pace of 0.4%. Annual Producer Price Index (PPI) is estimated to have contracted at a slower pace of 0.8%.

Investors will keenly focus on the US inflation data to know whether the disinflation process has resumed.

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