Oil at 1-week high ahead of US Fed policy as OPEC maintains 2024 forecast; Brent over $82/bbl

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₹6,535 per barrel on the multi-commodity exchange (MCX). The Organization of the Petroleum Exporting Countries (OPEC) maintained its 2024 forecast for relatively strong growth in global oil demand, despite lower than expected use in the first quarter, saying travel and tourism would support consumption in the second half of the year.OPEC and allies earlier this month agreed to extend most of its deep oil output cuts well into 2025."We're now at least considering the idea that maybe demand will pick up in the second half, and the market may actually need some additional OPEC supply," said Tim Evans, an independent energy analyst.Meanwhile, the World Bank on Tuesday said the U.S.

economy's stronger-than-expected performance has prompted it to lift its 2024 global growth outlook slightly, but warned that overall output would remain well below pre-pandemic levels through 2026.Mostly strong U.S. economic data and inflation still higher than the Fed's target have pushed financial markets to limit rate cut expectations to only two 25-basis points rate reductions this year, likely starting in September.

Economists have said there was a considerable risk of only one or no rate cuts in 2024.The release of U.S. consumer prices data for May and the conclusion of the Fed's two-day policy meeting are both scheduled for Wednesday.The European Central Bank should persist in restraining economic growth given the ample inflationary pressures and wait with its next rate cut until uncertainty recedes, ECB chief economist Philip Lane said on Tuesday.Traders were also cautious ahead of the release of macroeconomic data from China on Wednesday."The potential adverse macro driver for oil prices will be China's inflation data," said OANDA