Oil dipped as signs of stubborn U.S. inflation whipsawed wider markets and OPEC said its latest supply cuts stalled.

West Texas Intermediate settled below US$78, after fluctuating between gains and losses, as stocks rebounded and shrugged off a higher-than-expected inflation print. Brent futures retreated under $82 a barrel. In addition to the US economic data, OPEC’s monthly report said Iraq produced more crude than its quota for a second month.

The Fed is widely expected to hold interest rates steady for a fifth straight meeting when policymakers gather starting March 19. Slightly higher-than-expected CPI numbers are not likely to “rock the boat,” said Ole Hansen, a commodity strategist at Saxo Bank A/S, “overall a report that is unlikely to impact the thinking.”

Oil has advanced this year, but prices have been pushed and pulled by bullish and bearish dynamics. OPEC+ supply cuts have been offset by higher output from outside the group, while concerns about Chinese demand persist. Later this week, the International Energy Agency will provide a snapshot of the market.

Prices:

• WTI for April delivery fell 0.5 per cent to settle at $77.56 a barrel.
• Brent for May settlement declined 0.4 per cent to $81.92 a barrel.