Oil Holds Onto Gains Following US CPI Data

0736 GMT – Oil prices edge lower but hold on to most of the gains made Wednesday following U.S. inflation data. Brent crude oil is down 0.2% at $87.13 a barrel while WTI declines 0.1% to $83.15 a barrel. Oil jumped following the U.S. CPI data which showed inflation cooled in March. Expectations of growing tightness in the market are further lifting prices after data showed U.S. crude inventories rose last week. “Weakening Russian shipments, OPEC production cuts and retreating U.S. inventories are increasing prospects of a tighter market,” ANZ says in a note. Meanwhile, U.S. energy secretary Jennifer Granholm said the U.S. could begin refilling its strategic stockpiles of oil later this year, according to reports. (william.horner@wsj.com)