Friday’s oil settlement was $1/barrel. This is a result of China’s economic prospects improving, which boosted fuel demand in China’s second-largest economy.
The lifting of COVID-19 restriction by China should increase global demand this year, according to the International Energy Agency (IEAÂ ). This statement was made Wednesday, a day following OPEC which also predicted a rebound in Chinese demand.
Brent crude oil settled at $87.63 per barrel, an increase of $1.47 or 1.7%. U.S. crude oil settled at $81.31 per barrel, up 98cs or 1.2%
“Many traders believe that it is very likely that we will see higher demand from China as it continues dismantling its COVID policies,” stated Naem Aslam analyst at broker Avatrade.
Brent saw an increase of 2.8% and the benchmark in the United States, 1.8% respectively.
The U.S. Federal Reserve’s recent shift to lower interest rates, which could boost the U.S. economy, was another factor that supported oil.
According to Reuters, the Fed is expected to end its tightening cycle with increases of 25 basis point at its next two policy meetings. Rates should remain steady until then.
Federal Reserve Vice Chair Lael brainard stated that there are increasing chances of the U.S. economic “soft landing”. The Fed’s next rate-setting session is scheduled for Jan. 31 through February 1.
Baker Hughes Co (BKR.O.) also reported that the U.S. oil production fell to 10 to 613, which is its lowest level since November.
According to Edward Moya (OANDA senior market analyst), the world’s largest economies require more crude oil.
He stated that although the oil market is down due to global recession fears, it still shows signs it can stay tight for a while longer.
Oil prices rose despite U.S. inventories figures showing that crude stockpiles increased by 8.4 Million barrels in the week to January 13th to 448 million barrels. This is the highest level since June 2021.
Andy Lipow, president and CEO of Lipow Oil Associates, Houston, stated that a tapering of U.S. Strategic Petroleum Reserve sales helped to reverse negative sentiment and push oil prices.
Jim Ritterbusch, of consultancy Ritterbusch and Associates, stated that a price cap on Russian oil is helping to increase crude oil prices.
Ritterbusch stated that sanctions and caps on Russian crude oil are slowly gaining some price impact. This will make them more bullish when the global market absorbs last month’s Russian crude cargoes.
In 2022, Russia was China’s second largest crude oil supplier. Saudi Arabia was the highest-ranking.
. This is a result of China’s economic prospects improving, which boosted fuel demand in China’s second-largest economy.
The lifting of COVID-19 restrictions by China should increase global demand this year, according to the International Energy Agency (IEA ). This statement was made Wednesday, a day following OPEC which also predicted a rebound in Chinese demand.
Brent crude oil settled at $87.63 per barrel, an increase of $1.47 or 1.7%. U.S. crude oil settled at $81.31 per barrel, up 98cs or 1.2%
“Many traders believe that it is very likely that we will see higher demand from China as it continues dismantling its COVID policies,” stated Naem Aslam analyst at broker Avatrade.
Brent saw an increase of 2.8% and the benchmark in the United States, 1.8% respectively.
The U.S. Federal Reserve’s recent shift to lower interest rates, which could boost the U.S. economy, was another factor that supported oil.
According to Reuters, the Fed is expected to end its tightening cycle with increases of 25 basis points at its next two policy meetings. Rates should remain steady until then.
Federal Reserve Vice Chair Lael brainard stated that there are increasing chances of the U.S. economic “soft landing”. The Fed’s next rate-setting session is scheduled for Jan. 31 through February 1.
Baker Hughes Co (BKR.O.) also reported that the U.S. oil production fell to 10 to 613, which is its lowest level since November.
According to Edward Moya (OANDA senior market analyst), the world’s largest economies require more crude oil.
He stated that although the oil market is down due to global recession fears, it still shows signs it can stay tight for a while longer.
Oil prices rose despite U.S. inventory figures showing that crude stockpiles increased by 8.4 Million barrels in the week of January 13th to 448 million barrels. This is the highest level since June 2021.
Andy Lipow, president and CEO of Lipow Oil Associates, Houston, stated that a tapering of U.S. Strategic Petroleum Reserve sales helped to reverse negative sentiment and push oil prices.
Jim Ritterbusch, of consultancy Ritterbusch and Associates, stated that a price cap on Russian oil is helping to increase crude oil prices.
Ritterbusch stated that sanctions and caps on Russian crude oil are slowly gaining some price impact. This will make them more bullish when the global market absorbs last month’s Russian crude cargoes.
In 2022, Russia was China’s second-largest crude oil supplier. Saudi Arabia was the highest-ranking.
