Commodities and Futures News

Crude oil higher; Rising expectations of more Chinese stimulus help

2023.07.11 10:52


© Reuters.

Investing.com — Crude oil prices gained Tuesday, helped by growing expectations of more stimulus in China, the largest importer of crude in the world, as well as bullish OPEC comments regarding future demand.

By 09:20 ET (13:20 GMT), the futures traded 0.9% higher at $73.59 a barrel, while the contract climbed 0.7% to $78.24.

More Chinese stimulus expected

China’s jumped more than expected in June, data from the People’s Bank of China showed on Tuesday, with Beijing attempting to spur demand after three years of COVID curbs. 

Additionally, China’s central bank on Monday extended until the end of 2024 some policies in a November rescue package to shore up the property sector, and traders are expecting further stimulus measures to boost the world’s second largest economy, which is struggling to recover from the ravages of the COVID pandemic.

This has helped the market build on the gains that followed supply cuts by top exporters Saudi Arabia and Russia for August, announced last week.

OPEC sees demand climbing

Additionally, global demand for all forms of energy is forecast to rise by 23% through 2045, OPEC Secretary General Haitham Al Ghais said earlier Tuesday.

“We will require innovative solutions such as carbon capture utilisation and storage, and hydrogen projects in addition to a circular carbon economy, which has received a positive endorsement from the G20,” he said.

U.S. CPI could pressure risk assets

In the U.S., the largest consumer of energy in the world, the power grid operator in Texas forecast electricity use would break records again this week as residents in the state try to cope with a summer heatwave.

However, most attention this week will be on the release of the latest figures in the U.S., as these could influence the thinking of Fed officials ahead of the next policy-setting meeting later this month.

“This is important for markets, as it will shape expectations on monetary policy from the U.S. Fed in the months ahead. A number above year-on-year consensus (3.1%) would likely put some pressure on risk assets,” said analysts at ING, in a note.

Comments by a series of Fed officials Monday raised expectations that the may be close to ending of its rate-hiking cycle, something that has resulted in the U.S. dollar hitting a two-month low.

A weaker dollar makes crude cheaper for holders of other currencies and often boosts oil demand.

Later this session sees the release of the , as well as industry data from the detailing the extent of the U.S. crude inventories.

Source link

Related Articles

Back to top button
bitcoin
Bitcoin (BTC) $ 97,443.11 1.50%
ethereum
Ethereum (ETH) $ 3,336.10 2.32%
tether
Tether (USDT) $ 1.00 0.05%
solana
Solana (SOL) $ 246.66 4.85%
bnb
BNB (BNB) $ 650.38 2.95%
xrp
XRP (XRP) $ 1.36 11.89%
dogecoin
Dogecoin (DOGE) $ 0.416524 11.13%
usd-coin
USDC (USDC) $ 1.00 0.02%
cardano
Cardano (ADA) $ 0.989753 8.46%
staked-ether
Lido Staked Ether (STETH) $ 3,338.16 2.14%
tron
TRON (TRX) $ 0.204529 7.02%
avalanche-2
Avalanche (AVAX) $ 39.88 7.02%
stellar
Stellar (XLM) $ 0.534932 22.46%
the-open-network
Toncoin (TON) $ 6.00 3.21%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 9.29%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,965.16 1.95%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 97,309.07 1.17%
polkadot
Polkadot (DOT) $ 8.41 4.63%
chainlink
Chainlink (LINK) $ 16.63 4.30%
bitcoin-cash
Bitcoin Cash (BCH) $ 492.58 7.56%
weth
WETH (WETH) $ 3,335.63 2.23%
sui
Sui (SUI) $ 3.28 7.86%
pepe
Pepe (PEPE) $ 0.00002 9.78%
leo-token
LEO Token (LEO) $ 8.64 0.25%
near
NEAR Protocol (NEAR) $ 6.29 1.52%
litecoin
Litecoin (LTC) $ 94.84 7.89%
aptos
Aptos (APT) $ 11.96 6.53%
uniswap
Uniswap (UNI) $ 10.55 0.64%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,512.80 2.26%
hedera-hashgraph
Hedera (HBAR) $ 0.144057 4.75%
usds
USDS (USDS) $ 0.998666 0.34%
internet-computer
Internet Computer (ICP) $ 10.86 6.71%
crypto-com-chain
Cronos (CRO) $ 0.188099 4.32%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.542468 2.98%
ethereum-classic
Ethereum Classic (ETC) $ 28.12 7.75%
render-token
Render (RENDER) $ 7.53 3.90%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.08%
kaspa
Kaspa (KAS) $ 0.149276 8.58%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 4.97%
bittensor
Bittensor (TAO) $ 499.09 5.86%
whitebit
WhiteBIT Coin (WBT) $ 24.46 0.88%
dai
Dai (DAI) $ 1.00 0.08%
arbitrum
Arbitrum (ARB) $ 0.827254 3.16%
bonk
Bonk (BONK) $ 0.000045 12.31%
mantra-dao
MANTRA (OM) $ 3.72 3.26%
cosmos
Cosmos Hub (ATOM) $ 8.60 5.60%
vechain
VeChain (VET) $ 0.040601 6.01%
celestia
Celestia (TIA) $ 7.89 26.25%
filecoin
Filecoin (FIL) $ 5.45 4.71%
okb
OKB (OKB) $ 52.76 3.86%