Oil prices continued to rise in European session
2022.12.20 07:02
Oil prices continued to rise in European session
Budrigannews.com – Oil costs swung broadly prior to settling higher Monday, as financial backers weighed up the possibility of a China-drove lift to energy interest against nerves that the worldwide economy is set out toward a rough ride in the midst of continuous national banks rate climbs.
The price of a barrel of oil increased by approximately 90 cents to reach $75.19 on the New York Mercantile Exchange, while it increased by 76 cents to reach $80.000 on the London Intercontinental Exchange.
After a reversal of its COVID-zero policy resulted in an increase in cases, China, the world’s largest importer of crude oil, promised to provide support for its economy to mitigate the effects of COVID-related disruptions. Although Beijing’s promise of economic support stoked hopes that energy demand would remain steady, this infection wave is anticipated to be the first of three this winter.
However, others maintain their optimism that demand will rise above supply and maintain its current level, driving up oil prices.
“We anticipate a significant price recovery in the coming months, and the current price weakness is only temporary.” A barrel of Brent oil should once more cost USD 95 by the middle of the year, Commerzbank predicted in a recent note, citing expectations for increased oil demand. It went on to say that “global oil demand at the end of 2023 is expected to be 2.5 million barrels per day (bpd) higher than it is now, indicating that demand is likely to exceed supply again from the middle of 2023 and beyond.” However, growing concerns regarding the state of the global economy continue to cloud demand.
More Financial events of today
In a note, Scotiabank Economics stated that “dramatic slowdowns in China and Western Europe are largely driving a global recession that is assured.” According to Scotiabank Economics, an “aggressive monetary policy tightening” and an “equity market correction” are causing the United States to enter a “technical recession.”
