Crude oil prices fell by more than 3.5%, at the close of trading today, Tuesday, March 7 (2023), with increasing concerns about demand for crude, after the statements of the US Federal Reserve Chairman.
Federal Reserve Chairman Jerome Powell said the Fed will continue to raise interest rates unless the Fed shows signs of slowing.
And global crude prices began a slow rise at the end of yesterday’s sessions, Monday, after volatile sessions that witnessed a decline in prices, following Beijing’s announcement of a target for economic growth during the current year, less than expected, at 5%, according to what was published by Reuters.
Crude oil prices today
At the end of the session, Brent crude futures – for May 2023 delivery – fell by 3.3%, to $83.29 a barrel.
US West Texas crude – for April delivery 2023 – recorded a decline of 3.6%, achieving $ 77.68 a barrel, after achieving 1% gains at the end of yesterday’s sessions, according to what was seen by the specialized energy platform.
And with Brent crude prices falling, they failed to rise for the sixth consecutive session, which is the longest period of gains since May 2022, supported by hopes for a recovery in demand in China, especially with the intensification of new refining capacity in Asia and the Middle East.
Oil market conditions
Vivek Dar, an analyst at the Commonwealth Bank of Australia, said that supply concerns contributed to the rise in crude oil prices overnight, and these concerns most likely stem from Chevron CEO’s comment that there is not much surplus in the markets.
Dar explained that “the unknown key for 2023 will be disrupting Russia’s exports of oil and refined products,” after sanctions on Russian oil derivatives took effect on February 5, 2023.
Chevron CEO Mike Wirth announced that tankers carrying Russian oil and petroleum products now have to travel longer distances to reach non-sanctioned markets while oil inventories and swing supplies are limited.
He pointed out that this matter makes the global market vulnerable to any unexpected supply disruption, according to statements seen by the specialized energy platform.
expected indicators
The US Energy Information Administration lowered its forecast for oil prices this year, with expectations of an increase in global inventories, while raising estimates of global oil demand growth in 2023.
Meanwhile, weekly reports from the American Petroleum Institute, an industry group, are due by midday on Tuesday, while reports from the US Energy Information Administration will be released tomorrow, Wednesday, March 8th.
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