Oil prices set for monthly drop

31 Mar Oil prices set for monthly drop

Oil prices dipped on Friday, with benchmarks heading for their weakest monthly performances since November, ahead of key U.S. inflation data which could give clues on future interest rate moves and the strength of the dollar.

Brent futures, which have risen nearly 5% this week, were down 63 cents, or 0.8%, at $78.64 a barrel at 0824 GMT. U.S. West Texas Intermediate (WTI) crude fell 44 cents, or 0.5%, to $73.93, having gained about 7% so far this week.

The contracts were set for 6% and 4% monthly drops, respectively, after hitting their lowest since 2021 earlier in the month in the wake of the largest bank failures since the 2008 financial crisis.

Worries about a full-blown global banking crisis have abated after two banks, in the U.S. and Europe, were rescued.

Markets are now waiting for U.S. personal consumption expenditures (PCE) inflation figures, tracked closely by the Federal Reserve, which are due at 1230 GMT

Economists polled by Reuters expect the core PCE index to ease to 0.4% in February from January and stay broadly steady on an annual basis at 4.7%.