The price of a barrel of oil globally rose during trading on today, Friday, January 6 (2023) to continue its gains from the previous session.
This is being supported by hopes of increased demand in China and after data showed US fuel inventories dwindling in the wake of a winter storm that hit the country late last year.
The global price of a barrel of oil today
By 07:50 GMT (10:50 Mecca time), futures prices forBrent crude The benchmark – for delivery in March 2023 – by 0.25%, at 78.89 dollars a barrel.
The price of futures contracts has also increasedWest Texas Crude American – for February 2023 delivery – by 0.35%, to 73.93 dollars a barrel, according to data viewed by the specialized energy platform.
And it was Crude oil prices It closed its trading yesterday, Thursday, January 5, 2023, up more than 1%, with the release of the US inventory report.
Oil market conditions
CMC Markets analyst Tina Ting said: “Optimism is back in the oil markets as China reopens and more stimulus measures to revive the real estate sector, which is the main bullish driver for the price of a barrel of oil globally, which has led to an improvement in demand expectations in the coming year”.
He added that the decline in the US dollar has also added bullish momentum to the oil markets Reuters.
China on Thursday announced additional government support measures, including the creation of a dynamic mortgage rate adjustment mechanism for first-time home buyers, in an effort to revive the debt-leveraged housing sector, which accounts for a quarter of the country’s economy.
Transportation officials said on Friday that the total number of passenger journeys by road, rail, water and air during the upcoming Lunar New Year – which begins Jan. 22, 2023 – is expected to reach 2.1 billion this year, double the 1.05 billion during the same period last year.
Average daily scheduled passenger traffic during the holiday season, which begins on Saturday, is 73% of pre-pandemic levels in 2019.
finished Chinathe world’s largest importer of crude oil, enforced its strict anti-coronavirus policy, which has led to an increase in coronavirus cases across the country.
US oil stocks
In the US, data from Energy information management Distillate inventories, which include diesel and heating oil, fell more-than-expected in the week ending Dec. 30 on Thursday, dropping 1.4 million barrels, versus expectations for a drop of 396,000 barrels.
Meanwhile, U.S. gasoline inventories fell by 346,000 barrels last week, according to data from the Energy Information Administration, compared with analysts’ expectations for a drop of 486,000 barrels.
oil demand
However, on a weekly basis, oil prices are trading lower, with Brent and WTI contracts down about 7% from the previous week, as concerns over the possibility of a global recession weighed on trade sentiment.
“Oil is trying to rally, but demand concerns keep gains small,” said Edward Moya, senior market analyst at OANDA.
He added, “Saudi Arabia is cutting prices, as it appears the near-term outlook for crude demand won’t get much support from China’s strong reopening.”
lowered Aramco Saudi Arabiathe world’s largest crude exporter, prices for the top Arab Light crude it sells in Asia fell to their lowest levels since November 2021 as global pressures hit oil.
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