Investing.com -- Oil prices settled lower on Tuesday, as investors weighed up a hotter-than-expected U.S inflation report and a still-upbeat OPEC outlook on crude demand.
At 14:30 ET (18:30 GMT), the West Texas Intermediate crude futures fell 0.3% to trade at $77.62 per barrel and the Brent oil futures expiring in May fell by 0.3% to $81.97 a barrel.
OPEC maintains demand outlook
In its monthly report, released Tuesday, OPEC maintained to its forecast for oil demand to grow by 2.2 million barrels per day in 2024. The forecast continues to suggest that oil demand will outstrip supply.
Still, rising non-OPEC, which the oil cartel's forecast to grow by 1.1M barrels per day, has diluted the output cuts by OPEC and its allies, or OPEC+.
Beyond supply, however, the demand picture has been muddied by weaker growth in China and concerns that higher for longer interest rate could weigh on global growth amid stubborn inflation.
Dollar rise keeps oil prices in check as inflation comes in hot again
The dollar climbed slightly on a rise in Treasury yields following data showing that the pace of inflation was faster than economists had expected last month.
As oil is priced in U.S. dollars, a rise in the greenback makes oil more expensive and less attractive for foreign buyers.
The annualized reading of the closely-watched U.S. consumer price index increased by 3.2% last month, quicker than estimates that it would stay at a pace of 3.1% notched in January.
Fresh U.S. crude inventory data eyed
Investors are also eyeing up fresh U.S. petroleum data this week, with the American Petroleum Institute's petroleum report due later on Tuesday and the Energy Information Administration report due Wednesday.
The API report is expected to show domestic crude supplies increase by 400,000 barrels last week.
Scott Kanowsky, Ambar Warrick contributed to this report.