Crude oil prices rose marginally, during today’s trading, Thursday, February 9 (2023), amid hopes for a recovery in demand.
Optimism about a recovery in Chinese demand was offset by fears of weaker activity in the US, after inventories hit a 19-month high.
Crude oil prices today
By 07:29 a.m. GMT (10:29 a.m. Mecca time), the prices of benchmark Brent crude futures – for delivery in April 2023 – increased by 0.09%, to reach $85.17 a barrel.
The price of US West Texas crude futures – delivery in March 2023 – increased by 0.05%, to $ 78.51 a barrel, according to data viewed by the specialized energy platform.
Crude oil prices ended their trading, yesterday, Wednesday, February 8, with an increase of more than 1.5% for the third consecutive session, with optimism about the demand for crude and the decline of the US dollar.
Oil market conditions
Analysts from Haitong Futures said that US oil inventories continued to exceed expectations; This somewhat eroded the bullish sentiment generated by hopes for demand recovery in China.”
Yesterday, Wednesday, the Energy Information Administration said that crude oil inventories in the United States rose, last week, to their highest levels since June 2021, supported by higher production. US inventories of gasoline and distillates also rose last week; The demand for fuel remained weak.
On Wednesday, Fed officials said more interest rate increases are on the table; The US central bank is pressing ahead with its efforts to cool down inflation, although none of them were prepared to suggest that the January jobs report could prompt them to take a more aggressive stance on monetary policy.
demand for oil
Crude oil prices are supported by the prospect of increased demand from China; The world’s second largest oil consumer ended more than 3 years of a strict coronavirus non-spread policy involving citywide lockdowns and mass testing in December.
“Travel increased sharply in China after the Lunar New Year holidays, and we expect Chinese oil consumption to increase by about 1 million barrels per day this year, with strong growth emerging in late in the first quarter.
“Overall, this should lead to an increase in global demand by 2.1 million barrels per day in 2023,” they added, according to Reuters.
Meanwhile, BP Azerbaijan declared force majeure on shipments of Azerbaijani oil from the Turkish port of Ceyhan on February 7 after a massive earthquake struck Turkey and Syria early Monday.
The disaster had halted operations in Ceyhan and disrupted flows of crude oil from Iraq and Azerbaijan.
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