“WTI Crude Oil Prices Rise Supported by Expected Increase in Demand in Second Half 2023”

New York West Texas Intermediate (WTI) crude futures closed higher on Monday (May 22), supported by expectations that oil demand will pick up in the second half of the year. However, crude oil futures did not rise much. As the dollar’s strength and concerns about the US debt ceiling hampered the market.

• The WTI crude oil contract is delivered in June. It was up 44 cents, or 0.61%, at $71.99 a barrel.
• The Brent crude oil contract (BRENT) is delivered in July. rose 41 cents, or 0.54%, to close at $75.99/barrel.

The market is supported by the International Energy Agency (IEA) forecasting that oil demand will exceed supply by about 2 million barrels per day in the second half of this year. China’s oil demand accounts for about 60% of this year’s oil demand.

In addition, investors expect the market to face tight oil conditions from the production cuts of the Petroleum Exporting Countries (OPEC) and its allies. or OPEC Plus

However, the market was pressured by the strong dollar. as well as concerns that the US Federal Reserve’s (Fed) interest rate hike will affect the economy and demand for oil. Most recently, St. Louis Fed President James Bullard and Minneapolis Fed President Neil Kashcary. They came out to support the Fed to continue to raise interest rates to stem inflation.

Investors await the outcome of the latest debt ceiling talks between President Joe Biden and House Speaker Kevin McCarthy. There are now just 10 days left before the deadline for debt default.

In addition, investors will be keeping an eye on the release of crude oil stocks from the US Energy Information Administration (EIA) tomorrow at about 9:30 p.m. Thai time.

By InfoQuest News Agency (23 May ’23)

Tags: WTI oil, crude oil, oil price