Oil prices have not changed waiting for new impulse
2023.01.24 03:26
Oil prices have not changed waiting for new impulse
By Kristina Sobol
Budrigannews.com – On Tuesday, concerns about a slowdown in the U.S. economy held back gains, but hopes of a fuel demand recovery from China’s largest importer pushed crude oil prices slightly higher in Asian trade.
after reaching a session high of $88.36, was down 5 cents to $88.14 per barrel at 04:36 GMT. After rising to $81.88 earlier in the session, U.S. West Texas Intermediate (WTI) crude gained 2 cents to $81.64 per barrel.
According to Goldman Sachs (NYSE:) analysts, China’s demand tailwind is expected to benefit commodities like soybeans, LNG, and refined petroleum products. said.
Crude oil prices have risen this year in physical markets as traders have worried that sanctions on Russia could reduce supply and China, which is no longer restricted by the pandemic, has shown signs of buying more.
Sugandha Sachdeva, an independent oil market expert, stated, “In addition, the greenback is buttressing oil prices, as it is hovering around a multi-month low.”
As traders continued to evaluate the risks of a U.S. recession and the course of Federal Reserve policy, the dollar remained close to a nine-month low against the euro and reversed recent gains against the yen.
Oil and other commodities that are denominated in dollars, like it is, become less expensive for buyers who use other currencies when the dollar strengthens against the greenback.
OANDA analyst Edward Moya wrote in a note that “the economy still could rollover” in the United States and that “some energy traders are still sceptical on how quickly China’s crude demand will bounce back this quarter.”
The oil market and refinery profits have improved as a result of product demand. On Monday, the 3-2-1 crack spread, which serves as a proxy for refinery margins, reached $42.18 per barrel, the highest level since October.
Even though flash PMI data due on Tuesday is expected to show a contraction, investors have returned to petroleum futures and options at the fastest rate in more than two years as worries about a global business cycle downturn have eased.
During earnings reporting season, traders are keeping an eye out for additional business data this week that could indicate the health of global economies.
According to a preliminary Reuters poll released on Monday, U.S. stocks of crude oil and gasoline were anticipated to have increased last week, while distillate stocks were anticipated to have decreased.
The survey was carried out ahead of reports from the American Petroleum Institute, an industry organization, which are due at 4:30 p.m. ET (2130 GMT) on Tuesday, and the Energy Information Administration, a statistical arm of the U.S. Department of Energy, which are due at 10:30 a.m. (1530 GMT) on Wednesday.
