Crude oil prices rose by about 3%, at the end of trading today, Friday, April 28 (2023), for the second consecutive session, but recorded losses for the second week in a row.
Disappointing US economic data and uncertainty about further interest rate hikes affected the outlook for oil demand, sending prices below $80 a barrel.
Crude oil prices today
At the end of the session, benchmark Brent crude futures – for June 2023 delivery – rose 1.5%, to $79.54 a barrel.
West Texas Intermediate crude futures – delivery in June 2023 – increased by 2.7%, recording $ 76.78 a barrel, according to what was seen by the specialized energy platform.
Crude oil prices ended their trading yesterday, Thursday, April 27, on the rise, in an attempt to reduce the huge losses incurred during the previous two sessions.
Both benchmark contracts (Brent and West Texas Intermediate) fell by 2.6% and 1.4%, respectively, during the week ending today.
During April, Brent crude recorded a monthly loss of about 0.4%, while WTI posted a gain of 1.4%.
Oil price analysis
ANZ analysts said, today, Friday: “Crude oil made slight gains after two days of heavy selling amid mixed economic signals.”
The data showed that US economic growth slowed more than expected in the first quarter, despite jobless claims falling in the week ending April 22.
Investors are also concerned that potential interest rate increases by central banks fighting inflation could slow economic growth and dampen energy demand in the United States, Britain and the European Union.
The US Federal Reserve, the Bank of England and the European Central Bank are expected to raise interest rates at their next meetings.
Federal Reserve decisions
Satoru Yoshida, a commodities analyst at Rakuten Securities, said oil investors are waiting for other Federal Reserve and central bank decisions next week; For guidance on the future direction of interest rates and the global economy.
He added, “The market is calm due to a mixture of bullish and bearish economic data, and the recovery of the global stock market gave comfort to investors,” referring to a slight recovery in crude oil prices on Thursday, according to Reuters.
US stocks closed higher on Thursday; Strong earnings helped investors navigate signs of economic weakness.
oil supplies
On the supply side, Russian Deputy Prime Minister Alexander Novak said on Thursday that OPEC+ sees no need for further cuts despite lower-than-expected Chinese demand, but that the alliance can always adjust its policy if necessary.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, including Russia, known as OPEC+, announced this month that they would cut total production by about 1.66 million barrels per day; This led to a rise in crude oil prices.
The market rebounded after the OPEC+ announcement, but weakened in response to concerns about recession and the impact it will have on demand.
Earlier this week, data from the Energy Information Administration showed that US crude oil and gasoline inventories fell more than expected last week; Demand for motor fuels increased ahead of the peak summer driving season.
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