The global price of a barrel of oil rose about 3% during trading today, Monday, January 9 (2023) amid hopes of a recovery in demand.
This comes as borders reopen to China, the world’s largest importer of crude oil, raising expectations for fuel demand growth and offsetting global recession fears.
The global price of a barrel of oil today
By 08:30 GMT (11:30 ET), futures prices forBrent crude The benchmark – for delivery in March 2023 – increased by 2.75%, to 80.73 dollars a barrel.
The price of futures contracts has also gone upWest Texas Crude American – for February 2023 delivery – by 2.86%, to 75.88 dollars a barrel, according to data viewed by the specialized energy platform.
And it was Crude oil prices It concluded its trading on Friday, Jan. 6, 2023, with a difference, as US crude oil rose, while Brent crude oil fell, but crude oil posted weekly losses of more than 8%.
Over the past week, Brent and West Texas Intermediate crude oil prices posted weekly losses of approximately 8.5% and 8.1%, respectively.
Oil market conditions
Hopes for less sharp hikes in US interest rates are buoying financial markets and depressing the dollar.
A weaker US currency usually makes dollar-denominated commodities more accessible to investors who hold other currencies.
Avtar Sandu, senior director of commodities at Phillip Futures, said: “The price of a barrel of oil has globally recovered from last week’s losses as the economy reopened in China and less aggressive monetary policy expectations from the Federal Reserves that give a positive tone to the recovery. the request“.
As part of a “new phase” in the war against Corona, it has opened China Its limits on the weekend for the first time in 3 years.
Chinese question
Nationwide, the number of trips is expected to reach two billion during the Lunar New Year season, nearly double last year’s traffic and recovering to 70% from 2019 levels, Beijing says.
Over the past week, airlines increased their January international seat capacity by 9.5% to and from China as flights increased following the opening of their borders.
Despite oil’s gains on Monday, there were still concerns that the huge influx of Chinese travelers could cause a further rise in Corona injuries, while broader economic concerns lingered.
These concerns are reflected in the market structure of the benchmark oil futures contracts, with Brent and WTI contracts subject to first month expiration, when current prices are below post-delivery prices, usually indicating a bearish market trend.
Oil price forecast
It is likely to go up The global price of a barrel of oil Due to increased confidence in China’s reopening, but fears of a recession in the broader global market remain.
“This uncertainty is likely to lead to volatility in oil prices in the near term,” he added. As you mentioned Reuters.
Energy futures for crude oil, refined products and natural gas fell into the new year as traders reassessed their short-term concerns about cold weather, concerns about supply shortages and dumping deals.
Baker Hughes Energy Services said on Friday that U.S. energy companies reduced the number of operating oil and natural gas rigs by about 7 last week, the largest weekly drop since September 2021.
related topics..
Read also..
