Crude oil prices fell during trading today, Tuesday 8 November 2022, amid fears of a recession and the worsening of the Covid-19 epidemic in China.
Market participants feared falling fuel demand rather than fears of supply shortages as the European ban on Russian oil imports approached.
Crude Oil Prices Today
By 07:56 GMT (10:56 Mecca time), futures prices forBrent crude The standard – delivery in January 2023 – around 0.21%, at $ 97.71 a barrel.
When the price of futures contracts has dropped toRough West Texas The United States – delivery in December – rose 0.31% to $ 91.51 a barrel, according to data seen by the Specialized Energy Platform.
And she was Prices of crude oil Yesterday, Monday 7 November, it closed its trading with a drop of about 1%, with the return of fears of a decline in demand.
Oil demand in China
Both benchmarks (Brent and West Texas) hit their highest levels since August on Monday, amid reports that industry leaders Chinathe world’s largest importer of crude oil, are considering a way out of the country’s strict coronavirus restrictions.
However, over the weekend, Chinese health officials reiterated China’s adherence to its strict non-proliferation policy and recent data showed a contraction in exports. imports country unexpectedly in October.
Today, Tuesday, official data showed an increase in new cases of the new Corona virus in Guangzhou and other Chinese cities, as the global manufacturing center battles its worst wave ever and tests its ability to avoid a closure. in Shanghai style.
Prices in dollars
“The strength of the dollar has affected oil prices, as the price of oil is generally in US dollars, so a stronger dollar makes the commodity more expensive for holders of other currencies,” said Stephen Innes, managing partner of SBI. Asset Management.
CMC Markets analyst Tina Teng said market participants will be looking at US CPI data this week for trading signals.
“Against the backdrop of steady inflation and rising interest rates in major Western countries, oil futures contracts are still taking into account the possibility of a global economic downturn,” added Teng.
He pointed out that the slowdown in fuel demand In China, one of the reasons for the decline in oil futures prices in recent months.
Conditions of the oil market
ANZ Research analysts said in a statement that the fundamentals oil market In the short term it remains bullish, with the focus returning to supply problems.
They added: “The market is facing the deadline for European imports of Russian oil before the sanctions begin,” he said Reuters.
The ban imposed by the European Union on Russian oil In response to the Russian invasion of Ukraine on December 5, a moratorium on imports of petroleum products will follow in February.
US oil stocks
A preliminary survey by Reuters showed on Monday that U.S. crude oil inventories are expected to rise by 1.1 million barrels last week.
The survey was conducted prior to the release of the American Petroleum Institute reports at 21:30 GMT (06:30 Mecca time) and the Energy Information Administration will release the official data at 15:30 GMT (06: 30 pm GMT time). Mecca) tomorrow, Wednesday.
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