Oil trading reaction was unexpectedly better than the rest of the market after strong US inflation readings triggered a sell-off in all risk assets.
Although shrinking, but the decline recorded by the trading of the black commodity was seen to be quite limited, seeing both crude oil benchmarks still trading around the same price.
In the Asian session, Brent crude oil futures traded steady at $93 a barrel after losing around 1% in the previous session, while US WTI traded around $87 a barrel following a 0.4% decline on Tuesday.
What makes the oil market more resilient?
This is all due to the latest forecast by OPEC on crude oil demand which gives hope for the black commodity market to remain positive.
OPEC stuck to its forecast for global oil demand growth in 2022 and 2023, saying advanced economies would remain resilient despite headwinds such as rising inflation.
However, stronger-than-expected inflation readings also weighed on the market, which further increased investor expectations for the Federal Reserve (Fed) to continue tightening its monetary policy.
