NYMEX crude oil looks at $79.52 in the market outlook
On Thursday (January 12), international oil prices were under pressure. Although the demand outlook improved, the rise in oil prices was blocked before the release of U.S. inflation data. NYMEX crude oil looked at $79.52 in the market outlook.
At 16:14 Beijing time, NYMEX crude oil futures fell 0.03% to $77.39 a barrel; ICE Brent crude futures fell 0.02% to $82.65 a barrel.
Both oil prices rose about 3% overnight on optimism that fuel demand could grow in 2023 as the world’s top oil importer China reopened its economy, and concerns about the impact of sanctions on Russian crude output.
Serena Huang, head of analysis for Asia Pacific at Vortexa, said: “The reopening of China has driven continued optimism in the oil market. As the Lunar New Year approaches, higher travel should support demand for gasoline and jet fuel.”
CMC Market analyst Tina Teng said upcoming U.S. inflation data is a key risk factor for the oil market. That led traders to turn cautious ahead of Thursday’s data release.
Economists expect core U.S. consumer price growth to slow to 5.7% year-on-year in December, lower than the previous 6%; overall inflation is expected to slow to 6.5% from the previous 7.1%.
Additionally, the market is grappling with additional restrictions on sales of Russian fuel products that will come into force in February as the European Union continues its efforts to impose more sanctions on Russia. An international price cap imposed on Russian crude oil sales came into effect on Dec. 5.
The U.S. Energy Information Administration said the European Union’s upcoming Feb. 5 ban on seaborne imports of petroleum products from Russia could be more damaging than the European Union’s ban on seaborne imports of crude oil from Russia imposed in December.
On the daily chart, NYMEX crude oil started an upward wave III trend from $72.46, and the upper target looked at the 61.8% target of $79.52. Wave iii is a sub-wave of the upward (i) wave that started at $70.08.
