Oil prices have stabilized after opening of China
2023.01.24 08:13
Oil prices have stabilized after opening of China
By Tiffany Smith
Budrigannews.com – On Tuesday, hopes of a recovery in fuel demand from China’s top importer offset worries about a slowdown in the global economy and an anticipated increase in U.S. oil inventories, which pushed up crude oil prices.
was at $88.35 per barrel at 12:05 GMT, up 16 cents, or 0.2 percent. West Texas Intermediate (WTI) crude in the United States rose $81.84, or 22 cents, to $81.84.
OANDA analyst Edward Moya wrote in a note that “the (U.S.) economy still could roll over” and that “some energy traders are still sceptical on how quickly China’s crude demand will bounce back this quarter.”
As the corporate earnings season gets underway, traders are keeping an eye out for additional business data this week, which can provide insight into the state of economies worldwide.
According to a preliminary Reuters poll released on Monday, gasoline stocks and distillate stocks in the United States were anticipated to have increased last week.
The survey was carried out ahead of reports from the American Petroleum Institute, which are scheduled to be released at 4:30 p.m. ET (2130 GMT) on Tuesday, and the Energy Information Administration, which are scheduled to be released at 10:30 a.m.
NYSE: Goldman Sachs On the back of a rebound in Chinese demand, analysts anticipate that prices for commodities like crude oil, refined petroleum products, LNG, and soybeans will rise.
Crude oil prices in physical markets have risen this year in response to trader concerns that sanctions on Russia could reduce supply and an increase in Chinese purchases following the lifting of pandemic controls.
As traders continued to assess the risks of a U.S. recession and the direction that the Federal Reserve will take with its policy, the dollar remained close to a nine-month low against the euro and reversed recent gains against the yen.
Oil, a commodity denominated in the dollar, is less expensive for buyers who use other currencies when the U.S. currency is weaker.
As worries about a global business cycle downturn have eased, investors have returned to petroleum futures and options at the fastest rate in over two years.
In January, business activity in the Eurozone unexpectedly returned to modest growth, according to S&P Global (NYSE:). British private sector economic activity fell at its fastest rate in two years, however, as the flash Composite Purchasing Managers’ Index (PMI) showed on Tuesday.
