Oil prices are adjusted after weekly sales
2023.02.20 01:00
Oil prices are adjusted after weekly sales
By Tiffany Smith
Budrigannews.com – Although pressure from concerns over rising interest rates and deteriorating demand persisted ahead of additional indicators from the Federal Reserve on the path of monetary policy, oil prices rose on Monday, recouping a portion of recent losses.
As fears of further policy tightening were raised by higher-than-anticipated U.S. inflation and hawkish remarks from some Fed officials, crude prices were suffering significant declines from the previous week.
This year, economic activity is expected to be stifled by rising interest rates, which may result in a decrease in oil demand.
by 21:44 ET (02:44 GMT), it had increased 0.3 percent to $83.41 a barrel and 0.5 percent to $76.90 a barrel. Last week, both contracts fell by about 4%.
This week, the Fed’s February meeting, scheduled for Wednesday, is the primary focus. Throughout the meeting, the central bank had maintained its hawkish rhetoric, and the minutes were likely to reflect this.
This week also includes a number of Fed speakers and a reading on the index, the Fed’s preferred inflation gauge, which is expected to provide additional insight into monetary policy.
After the United States produced significantly more oil than anticipated the week before, signs of a growing supply glut dented oil prices. Additionally, the sale of 26 million barrels of crude from the Strategic Petroleum Reserve was made public by Washington.
Crude prices have struggled this year due to growing concerns about a global economic slowdown and the beginning of the effects of sharp increases in interest rates.
In any case, oil bulls have still waited for a recuperation in China, as the country reappears from three years of Coronavirus lockdowns. According to OPEC and the IEA, the world’s largest oil importer’s economic recovery is anticipated to propel crude demand to record levels this year.
On Monday, the People’s Bank of China also held steady at all-time lows, as the government tries to boost economic growth with more stimulus measures.
China’s economic data, on the other hand, have so far presented a mixed picture of growth.
