Oil prices rose as investors flocked to risky assets amid optimism about the debt ceiling negotiations in the United States, and they largely ignored a bearish report regarding the country’s oil inventories.
US crude prices stabilized above $72 a barrel on Wednesday due to an improvement in risk appetite in general in the markets, driven by hopes that an agreement could be reached to raise the spending ceiling for the US government.
Some of these gains were negatively affected by the issuance of a report revealing that the US stockpile increased by more than 5 million barrels during the past week, which is the largest increase in the stockpile since January.
“Today’s trading is somewhat proving that traders have put fundamental indices behind their backs,” said Rebekah Babin, Senior Energy Trader at CIBC Private Wealth. “The numbers are disappointing – if not downright bearish and pessimistic. However, crude prices held firm as risk appetite forms the overall trading environment.
Oil prices fell by 9.4% since the beginning of this year due to the negative impact on the outlook as a result of the slower-than-expected recovery of the Chinese economy, the aggressive monetary austerity campaign pursued by the US Federal Reserve, and investor concerns about the problem of the debt ceiling in the United States.
Nevertheless, US retail sales rose in April, a sign that consumer spending in the world’s largest economy is still resilient in the face of economic challenges.
2023-05-17 20:55:56
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