02:37 PM EDT, 05/14/2024 (MT Newswires) -- West Texas Intermediate (WTI) crude oil closed at a two-month low on Tuesday as a US inflation measure rose more than expected, further dimming hopes for the stimulus of a US interest-rate cut, while OPEC reiterated its optimistic 2024 demand forecast.

WTI crude for June delivery closed down US$1.10 to settle at US$78.02 per barrel, the lowest since March 12. July Brent crude, the global benchmark, was last seen down US$1.02 to US$82.34.

The US Bureau of Labor Statistics on Tuesday reported the producer price index rose by 0.5% in April from March, up from a rise of 0.3% in March and ahead of the consensus estimate for a 0.3% monthly rise, according to Marketwatch.

Core PPI, which excludes volatile items like food and energy, rose 0.4%, up from 0.2% in March and above the 0.2% consensus estimate.

The report is the latest to show US prices continue to rise above the Federal Reserve's 2% target, again cutting into hopes the central bank will be able to lower interest rates from 23-year highs before year end. The US April consumer price index will be released on Wednesday, with the consensus estimate calling for a rise of 3.4% annualized, down from 3.5% in March.

"(The) focus is turning to the US CPI release on Wednesday which will be a make-or-break release for the Fed and guide its next policy move," Saxo Bank noted.

OPEC on Tuesday released its Monthly Oil Market Report, reiterating its forecast for a 2.2-million barrel per day rise in 2024 demand from 2023. The cartel's estimate remains above demand forecasts from the International Energy Agency, which will release its monthly Oil Market Report on Wednesday. It last month pegged 2024 demand growth at 1.6-million barrels per day.