Oil prices moved to fall by close trading session
2023.03.03 12:38
Oil prices moved to fall by close trading session
By Ray Johnson
Budrigannews.com – Oil prices fell on Friday, but they were poised to rise for the week. Concerns about a recession, expanding inventories, and tightening monetary policy in Europe were outweighed by renewed optimism regarding the recovery of demand in China.
By 1207 GMT, futures had dropped 51 cents, or 0.6%, to $84.24 per barrel. WTI crude futures in the United States were down 41 cents, or 0.5 percent, to $77.75.
This week, Brent has gained about 1.3 percent, while WTI is expected to gain 1.9 percent.
PVM analyst Stephen Brennock stated, “Those betting on higher oil prices are basking in the afterglow of the positive macro data out of China.”
A private sector survey revealed on Friday that in China, activity in the services sector expanded at the fastest rate in six months in February as demand was revived by the removal of stringent COVID-19 restrictions.
Expectations of a recovery in fuel demand were bolstered by the fact that manufacturing activity in China expanded last month at the fastest rate in more than a decade. This month, China’s seaborne imports of Russian oil are expected to reach a record high.
This week, sources involved in policy discussions informed Reuters that the world’s largest oil importer is aiming for a growth rate of as much as 6% in 2023.
Despite record exports of U.S. crude, the tenth consecutive week of crude stock builds in the United States was generally ignored by the market.
Prices also rose as a result of Russia’s March plan to intensify cuts to oil exports.
In the meantime, Reuters polled analysts predict that the dollar will weaken over the next year, making oil in dollars more affordable for holders of other currencies.
The European Central Bank’s Governing Council member Pierre Wunsch stated that its key interest rate could rise as high as 4% if underlying inflation remains high, sending out hawkish signals on the central bank front.
