Crude oil prices declined marginally during today’s trading, Friday, March 3 (2023), but are heading for weekly gains.
The recovery of factory activity in China, the world’s largest oil importer, offset growing concerns about rising US crude inventories and the possibility of interest rate increases in Europe.
Crude oil prices today
By 07:35 a.m. GMT (10:35 a.m. Mecca time), Brent crude futures prices – for May 2023 delivery – fell by 0.11%, to reach $84.66 a barrel.
The price of US West Texas crude futures – delivery in April 2023 – decreased by 0.12%, to $ 78.07 a barrel, according to data viewed by the specialized energy platform.
Crude oil prices ended their trading yesterday, Thursday, March 2, on the rise, to continue to reap gains for the third consecutive session.
Oil market conditions
Despite starting trading lower today, Friday, Brent crude is down about 1.6% so far this week, on track for a second straight week of gains, while WTI jumped about 2%, bouncing back from a small loss the previous week in hopes of achieving Strong growth in fuel demand in China, the world’s largest oil importer.
Manufacturing activity in China grew last month at the fastest pace in more than a decade, boosting expectations of a recovery in fuel scrapping.
Seaborne imports of Russian oil are set to hit a record level this month, according to data seen by the specialized energy platform.
Comments from Atlanta Fed President Rafael Bostick that the Fed should stick to a “flat” quarter point rate eased concerns in the US and helped support crude oil prices on Thursday even after strong unemployment data.
recession fears
However, the market remains wary of consumer prices rising faster than expected in France, Spain and Germany, which boosted expectations of a rate hike by the European Central Bank.
Eurozone inflation rose to a higher-than-expected annualized rate of 8.5% in February, according to a first estimate from the European Union’s statistics agency.
The 10th consecutive week of rising oil inventories in the US also affected the market this week, Reuters reported.
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