Oil quotes falling due to growth of stocks in U. S.
2023.02.09 12:28
Oil quotes falling due to growth of stocks in U. S.
By Ray Johnson
Budrigannews.com – After the nation’s oil inventories reached their highest level in months and indications that the Federal Reserve may continue to raise interest rates, oil prices fell during U.S. trading hours on Thursday.
By 14:47 GMT, futures were down 95 cents to $84.14 a barrel, while WTI crude futures were down 90 cents to $77.57 a barrel. This week, both benchmarks have gained more than 5%.
According to PVM analyst Tamas Varga, “relentlessly rising U.S. commercial inventories and potentially entrenched inflation limit any immediate upside potential.”
He stated that oil prices would be supported in the second half of the year by rising demand from China and falling inflation.
According to the Energy Information Administration, increased production contributed to stock prices in the United States rising last week to their highest level since June 2021. EIA/S] Last week, gasoline and distillate inventories in the United States also increased.
Officials from the U.S. Federal Reserve have stated that the bank will continue to raise interest rates in an effort to curb inflation, sending bearish signals to risk assets like oil and stocks. GLOB/MKTS] On the other hand, the possibility of increased demand from China provided some support for oil prices as the world’s second-largest consumer of oil ended its strict zero-COVID policy that lasted for more than three years.
In a note, analysts at ANZ Bank predicted, “We expect Chinese oil consumption to increase by around 1.0 million barrels a day this year, with strong growth emerging as early as late in Q1.”
Global demand should rise by 2.1 million barrels per day overall by 2023 as a result of this.
(NYSE:) BP After a massive earthquake struck Turkey and Syria early Monday, Azerbaijan declared force majeure on Azeri crude shipments from the Turkish port of Ceyhan. BP Azerbaijan stated on Thursday that pipeline transportation of Azeri oil continues.
A market structure known as backwardation saw Brent’s front-month loading contract rise to a $3-a-barrel premium over contracts six months out, indicating traders saw tight current supply.
