© Reuters.
Investing.com – Oil prices are now rising during the US session, with the dollar index weaker and important data from OPEC.
Crude oil (WTI) is now trading at 16:30 Riyadh time, at $73.62, up 0.88%, while Brent oil rose by 0.70%, to $78.25 a barrel.
And OPEC announced that import profits rose to their highest level since 2014 last year, reaching $873.6 billion in 2022.
For its part, Saudi Arabia affirmed its support and complete confinement to OPEC’s precautionary steps to preserve markets and oil prices.
oil this morning
Oil prices rose in Asian trading on Tuesday, supported by the prospect of supply cuts by the world’s largest producers, while expectations of further stimulus measures in major importer China also helped support sentiment.
However, caution over upcoming US data and Fed speakers kept gains limited, as markets sought more clues about the world’s largest oil consumer.
Crude oil prices witnessed a weak start to the week’s trading amid fears of rising US prices and deteriorating economic conditions, after hawkish signals from Federal Reserve officials and weak economic data from China.
But the losses were somewhat limited as Fed officials also signaled an eventual end to the bank’s rate hike cycle, while the Chinese government also expanded some stimulus measures to support the economy.
The prospect of tight supplies, after the two major producers and Russia pledged further production cuts, also provided an upward case for oil prices.
Brent crude futures rose 0.3% to $78.04 a barrel after briefly hitting a two-month high on Monday, while WTI futures rose 0.5%, staying within sight of a one-month high.
US CPI, Fed signals on hold
Oil markets have been squarely focused on US Consumer Price Index inflation data, due for release on Wednesday. The reading is widely expected to take into account the Federal Reserve’s plans to raise interest rates in the future.
More signals are also due from the Fed, with members Neil Kashkari and Loretta Mester scheduled to speak later in the week.
While fears of rising interest rates in the United States and their strengthening led to the continuation of oil prices trading negatively during the year, amid growing fears of deteriorating economic conditions later in the year, which affected the demand for crude oil.
However, the much weaker-than-expected June report prompted some hopes that the Fed would eventually turn back on its hawkish stance. The central bank is expected to raise interest rates by at least an additional 50 basis points this year, starting with a 25 basis point hike by the end of July.
China is in focus amid the economic downturn
Weak inflation readings from China, which showed an inflation indicator about to contract, also weighed on oil markets on Monday. But the reading prompted hopes of more emergency spending measures from Beijing to support the economy.
Also, on Monday, the People’s Bank of China offered some political support to the huge real estate sector through the end of 2024, as the bank moves to support China’s economic growth.
A growing number of market participants and analysts are also now calling for more political support from the government to avoid a slowdown in the world’s largest oil importer, as the government struggles to recover from three years of Covid turmoil.
Weakness in China has greatly undermined bets that the country will push oil demand to record levels this year.
The Echo trading strategy is one of the latest, strongest and most effective strategies, and it benefits many traders, especially the young ones, and leads them to the path of making money in a simple way.
It offers you a free Investing Webinar for an extensive and complete explanation of this strategy with Dr. Muhammad Al-Ghubari on Thursday, July 13th at 8:00 KSA, all you have to do is register.
Register from here
2023-07-11 13:13:00
#Urgent #Oils #rise #continues #important #event.. #OPECs #profits #exceeded #billion #Powered #Investing.com
