Oil prices declined on Monday, extending the downward trend observed last week, as traders anticipated the release of new inflation data. 

According to CNBC, the West Texas Intermediate (WTI) contract for April decreased by 40 cents to $77.61 per barrel, while the Brent contract for May dropped by 35 cents to $81.73 per barrel.

The decline in oil prices last week, with US crude and the global benchmark falling by 2.45% and 1.76%, respectively, was attributed to subdued demand in China and statements from the International Energy Agency (IEA) suggesting an ample supply for the year.

As reported by VCPost, the downward trend of oil prices was expected in February. This time, the extending loss is attributed to the dollar surge amid investor expectations of robust inflation. This delayed potential US interest rate cuts that could stimulate global gasoline consumption.

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However, earlier this month, VCPost noted that the oil industry gave minimal hope after oil prices showed a slight movement, as Brent crude futures settled at $82.96 per barrel and US West Texas Intermediate crude futures closed slightly lower at $78.93, reflecting stability in the market. 

The day's pricing was influenced by the interpretation of new economic data from China and the increase in oil supply from North America. In the same report, China's import and export growth during January and February surpassed expectations, providing optimism to policymakers regarding global trade recovery efforts. 

Unfortunately, with today's decreased oil prices, traders will pay close attention to releasing consumer and producer price indexes, which are scheduled for later in the week, particularly on Tuesday and Thursday. These indexes are significant because they can offer insights into when the Federal Reserve might decide to cut interest rates. 

Many investors are predicting rate cuts in June because lower interest rates typically encourage economic growth, increasing the demand for crude oil.

Moreover, OPEC and the IEA (International Energy Agency) will release their monthly oil market reports this week. These reports are crucial as they update the market on production levels, demand forecasts, and overall market dynamics. They are expected to affect market sentiment and trading activities, potentially adding to the volatility in the oil market.

To assure affected governments, the head of the International Energy Agency's (IEA) oil markets and industry division remarked that the global oil market remains adequately supplied, with demand growth decelerating and supplies increasing from the Western Hemisphere. 

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