Crude oil prices witnessed a slight increase, today, Tuesday, April 18 (2023), supported by the strong economic data coming from China, which is the largest importer of oil in the world.
The data reinforced the expectations of demand for crude oil, which contributed to achieving a price recovery, despite what witnessed yesterday’s sessions, Monday, April 17, of a decline in crude prices by 2%, according to what was published by Reuters.
And official data coming from China contributed to the return of crude oil prices to rise, especially with the achievement of economic growth in Beijing faster than expected during the first quarter of this year (2023), in addition to an expansion of 4.5% on an annual basis, according to what was seen by the energy platform. Niche.
Crude oil prices today
By 7:00 AM GMT (10:00 AM Mecca), benchmark Brent crude futures for June 2023 delivery had risen to $85.10 a barrel.
Meanwhile, US West Texas Intermediate crude futures – for May 2023 delivery – jumped 29 cents, to $81.12 a barrel, according to figures seen by the specialized energy platform.
Crude oil prices rose today, Tuesday, thanks to the expansion of the Chinese economy on an annual basis, by 4.5%, with policy makers in Beijing moving to boost growth, after ending the strict restrictions imposed to confront the Corona pandemic, last December 2022.
A greater recovery is expected in the coming months, especially with the approaching peak travel season in China, next May 2023, as fuel demand is expected to increase significantly.
Oil price analysis
“The remarkable recovery of the Chinese economy has supported the recent recovery in crude oil prices,” said Leon Li, an analyst at CMC Markets, explaining that fuel demand is expected to rise with the peak of the seasonal travel period in China.
Li pointed to the high productivity of Chinese refineries to record levels in March, indicating strong demand for fuel, as refineries stepped up operations to capture strong export demand and build up stocks ahead of planned maintenance.
In turn, the International Energy Agency expected China to account for most of the growth in demand for crude oil for the year 2023, but it warned that production cuts by OPEC + countries may exacerbate the expected supply deficit in the second half of the year, and may harm consumers and hinder the global economic recovery.
Analysts at National Australia Bank also considered that oil prices are still under pressure due to the strength of the dollar and the rise in Treasury yields, especially as the dollar rises with interest rates raised, while traders are betting that the US Federal Reserve will raise interest rates again in May. Next 2023.
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