Oil prices rose during trading today, Thursday, July 13 (2023), to continue to reap gains for the third day in a row, amid hopes for a recovery in demand.
This came after US inflation and economic data raised hopes that the Federal Reserve might have fewer hikes in interest rates, with the dollar falling.
Oil prices were supported by Chinese trade data which showed that monthly oil imports hit the second highest level on record in June.
Oil prices today
By 06:32 AM GMT (09:32 AM Mecca), benchmark Brent crude futures – for September 2023 delivery – were up 0.29%, at $80.34 a barrel.
US West Texas Intermediate crude futures – August 2023 delivery – increased by 0.20% to $75.90 a barrel, according to figures seen by the specialized energy platform.
And oil prices ended their dealings yesterday, Wednesday, July 12, 2023, with an increase of more than 1%, as the price of a barrel of Brent crude exceeded the level of $ 80 for the first time since April (2023), with the decline of the US dollar after US data showed a slowdown. inflation.
Inflation in America
US data showed on Wednesday that consumer prices rose modestly in June, recording the smallest annual increase in more than two years.
Markets expect a further rise in interest rates, but oil traders are hoping that the hikes will be limited, as higher rates could slow economic growth and reduce demand for oil.
The Johan Sverdrup oil field in the North Sea – Photo courtesy of Reuters
“The lower-than-expected US inflation reading indicates that the Fed’s tightening cycle so far is having the desired effect of easing pricing pressures,” said IG Market Strategist Yip Jun Rong.
“Some catch-up gains seem to be at play, with USD weakness and some follow-through in Chinese stimulus hopes recently counteracting the catalysts for bearish sentiment,” Yip added.
China’s oil imports
Meanwhile, China’s total imports of crude oil in June came to 52.06 million metric tons, or 12.67 million barrels per day, up 45.3% year on year, marking the second-highest monthly figure ever, customs data released Thursday showed. .
Customs data showed that imports of crude oil in the period from January to June rose by 11.7% to reach 282.1 million metric tons (more than two billion barrels), while exports of refined petroleum products increased during the first half of the current gas by 44.7 percent. % to reach 31.31 million metric tons.
However, Lv Daliang, a spokesman for the General Administration of Customs, said on Thursday that slowing global economic growth, sluggish global trade and investment, and geopolitical risks still affected China’s trade.
US oil stocks
Another factor limiting the gains in oil prices was the US Energy Information Administration’s report that US oil inventories increased much more than expected by nearly 6 million barrels last week.
Price Futures Group analyst Phil Flynn said gasoline inventories remained largely unchanged at 219.5 million barrels over the July 4 weekend, an “unheard of” situation.
Analysts polled predicted Reuters They saw a significant drop in gasoline stocks as drivers took to the roads for the holidays.
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2023-07-13 06:53:33
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