Commodities and Futures News

Oil Stalls Below 2-Mth High as Markets Weigh Mixed Demand Signals

2022.11.07 21:12



© Reuters.

By Ambar Warrick 

Investing.com– Oil prices hovered below a two-month high on Tuesday as markets weighed mixed demand signals from major importer China, although weakness in the dollar, on expectations of a less hawkish Federal Reserve, helped prices retain recent gains. 

Data on Monday showed China’s oil imports jumped to a five-month high in October, driven largely by increased import quotas for local refiners, as Beijing struggles to shore up economic growth. 

But other indicators show that sluggish economic activity is likely to keep Chinese demand subdued, although lower selling prices for crude and increased inventory building may support Chinese oil imports briefly. 

Crude markets marked a choppy start to the week after Chinese authorities said they had no plans to scale back COVID-19 lockdowns in the country, especially as it grapples with its worst outbreak since May. 

The move heralds more disruptions to business activity in the world’s largest oil importer, a trend that has decimated economic growth in the country this year.

rose slightly to $98 a barrel, while rose 0.2% to $91.95 a barrel by 20:37 ET (01:37 GMT). Both contracts briefly hit a two-month high on Monday, albeit in volatile trade.

Weakness in the , driven by hopes of a less hawkish Federal Reserve, appeared to be the main driver of recent gains in oil prices. Crude markets rallied last week after several Fed officials said they support smaller interest rate rises in the coming months.

Investors are now awaiting U.S. data due later this week, which is expected to factor into the Fed’s plans for more rate hikes. Rising interest rates were one of the biggest weights on oil prices this year, as markets feared tighter monetary policy will hurt crude demand. 

In the U.S., focus is also on the midterm elections, starting later in the day, which will see Americans voting to decide which party controls both chambers of Congress. 

President Joe Biden had released oil from the country’s Strategic Petroleum Reserve in a bid to lower gasoline prices ahead of the elections. 

But tightening supply, especially after a production cut by the Organization of Petroleum Exporting Countries (OPEC), pushed up crude prices. Tighter supply is also expected to keep crude prices elevated in the coming months, particularly if demand increases during winter. 

 



Source link

Related Articles

Leave a Reply

Back to top button
bitcoin
Bitcoin (BTC) $ 96,179.77 2.52%
ethereum
Ethereum (ETH) $ 3,301.76 4.90%
tether
Tether (USDT) $ 1.00 0.19%
solana
Solana (SOL) $ 245.11 5.94%
bnb
BNB (BNB) $ 645.74 3.89%
xrp
XRP (XRP) $ 1.32 15.63%
dogecoin
Dogecoin (DOGE) $ 0.403687 11.52%
usd-coin
USDC (USDC) $ 0.999032 0.12%
cardano
Cardano (ADA) $ 0.954242 14.15%
staked-ether
Lido Staked Ether (STETH) $ 3,299.74 4.97%
tron
TRON (TRX) $ 0.202242 7.53%
avalanche-2
Avalanche (AVAX) $ 38.95 10.03%
the-open-network
Toncoin (TON) $ 5.90 5.97%
shiba-inu
Shiba Inu (SHIB) $ 0.000025 9.70%
wrapped-steth
Wrapped stETH (WSTETH) $ 3,916.37 4.63%
stellar
Stellar (XLM) $ 0.45668 11.21%
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 96,034.73 2.57%
polkadot
Polkadot (DOT) $ 8.33 5.69%
chainlink
Chainlink (LINK) $ 16.46 7.39%
bitcoin-cash
Bitcoin Cash (BCH) $ 488.69 6.94%
weth
WETH (WETH) $ 3,299.79 4.88%
sui
Sui (SUI) $ 3.28 8.72%
pepe
Pepe (PEPE) $ 0.000019 10.80%
near
NEAR Protocol (NEAR) $ 6.30 2.61%
leo-token
LEO Token (LEO) $ 8.34 3.68%
litecoin
Litecoin (LTC) $ 92.72 10.08%
aptos
Aptos (APT) $ 11.73 10.24%
uniswap
Uniswap (UNI) $ 10.21 9.14%
wrapped-eeth
Wrapped eETH (WEETH) $ 3,479.92 4.78%
hedera-hashgraph
Hedera (HBAR) $ 0.137174 14.21%
usds
USDS (USDS) $ 0.999792 0.02%
internet-computer
Internet Computer (ICP) $ 10.52 11.00%
crypto-com-chain
Cronos (CRO) $ 0.180047 8.69%
polygon-ecosystem-token
POL (ex-MATIC) (POL) $ 0.529752 11.58%
ethereum-classic
Ethereum Classic (ETC) $ 27.27 11.04%
ethena-usde
Ethena USDe (USDE) $ 1.00 0.15%
render-token
Render (RENDER) $ 7.33 9.58%
fetch-ai
Artificial Superintelligence Alliance (FET) $ 1.43 0.05%
kaspa
Kaspa (KAS) $ 0.146895 8.92%
bittensor
Bittensor (TAO) $ 492.94 8.07%
whitebit
WhiteBIT Coin (WBT) $ 24.33 1.86%
dai
Dai (DAI) $ 0.999057 0.12%
arbitrum
Arbitrum (ARB) $ 0.804235 7.76%
mantra-dao
MANTRA (OM) $ 3.65 2.55%
bonk
Bonk (BONK) $ 0.000044 13.17%
celestia
Celestia (TIA) $ 7.65 15.66%
vechain
VeChain (VET) $ 0.039401 11.98%
filecoin
Filecoin (FIL) $ 5.27 2.79%
cosmos
Cosmos Hub (ATOM) $ 8.13 5.23%
okb
OKB (OKB) $ 52.07 0.06%