WTI Crude Oil Surges 2% Above $75 on CPI

WTI crude futures rose more than 2% to $75 on a lower-than-expected Consumer Price Index (CPI) release. This will be one factor that will encourage the US Federal Reserve (Fed) to slow rate hikes.

At 22:53 Thai time, contract for West Texas crude oil (WTI) for January delivery. which traded on the NYMEX plus $1.93, or 2.64%, at $75.10 a barrel.

Investors add to their expectations that The Fed will raise interest rates by just 0.25% in February 2023. This is the Fed’s first monetary policy meeting next year. After revealing lower than expected inflation numbers today

Oil prices benefited from the depreciation of the dollar. After revealing lower than expected CPI today. The weakening of the dollar will increase the attractiveness of the contract. This makes oil contracts cheaper for holders of other currencies.

Furthermore, oil prices were also supported by market tightness. After Canadian energy giant TC Energy announced the closure of the Keystone pipeline. due to an oil leak Keystone is an oil pipeline from Alberta, Canada to the Gulf Coast and Midwest of the United States.

At the same time, investors are hoping China will reopen the country. After the measures to control the COVID-19 will be relaxed. continuously that the demand for oil will increase

Goldman Sachs Releases Pending Report Demand for oil in China has surged since the country opened up. It will be a factor that will push oil prices in the world market to rise by another 15 dollars a barrel.

“China’s oil demand will increase by an average of 1 million barrels per day from 2022 to 2023,” the report said.

Bloomberg News reported that China’s easing of COVID-19 control measures has led to the rapid recovery of the domestic aviation industry and help ease the financial crisis of China’s top three airlines after suffering billions of dollars in losses from the outbreak of COVID-19.

Investors will keep an eye on the American Petroleum Institute (API) crude inventories release today, while the US Energy Information Administration (EIA) releases tomorrow. Analysts expect US crude stockpiles to decline by 3.9 million barrels last week.