Oil prices slip from near 10-month high, Brent holds $90

investing.com:

Investing.com-- Oil prices fell from a near 10-month high on Monday, seeing a measure of profit taking after a stellar rally over the past month, although bets on tightening supplies still kept Brent above key levels. 

Markets turned cautious before key U.S. inflation data due later this week, which is largely expected to factor into interest rates. A Federal Reserve meeting is also on tap later in September.

Oil prices saw a strong run-up last week after Saudi Arabia and Russia announced deeper-than-expected supply cuts for the remainder of the year, spurring bets that market tightness will help offset any potential demand headwinds from rising interest rates. 

But prices now appeared to have paused amid some profit taking, while uncertainty over interest rates and fears of a potential drop-off in U.S. demand also kept markets uncertain. 

Brent oil futures fell 0.5% to $90.25 a barrel, while West Texas Intermediate crude futures fell 0.8% to $86.85 a barrel by 20:47 ET (00:47 GMT). 

Focus this week is on monthly reports from the Organization of Petroleum Exporting Countries (OPEC) and the International Energy Agency (IEA)  for their respective forecasts for oil markets.

Both groups expect tighter supplies to lift oil prices this year, and have also reiterated that crude demand is expected to remain relatively strong thanks to a recovery in China. 

But a swathe of recent data showed that China’s economy was cooling despite the lifting of anti-COVID restrictions earlier this year. While the country’s oil imports have remained steady, doubts have risen over its appetite for fuel, especially amid deteriorating economic conditions.

Recent data showed that Chinese consumer inflation crept back into positive territory in