Crude oil prices rose today, Tuesday, March 7 (2023), with oil industry leaders announcing their concerns about a limited surplus in global markets, and uncertainty about Russian supplies, despite the recovery in demand in China.
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.
At the same time, crude oil prices are awaiting a new move as investors await the statement that US Federal Reserve Chairman Jerome Powell will make this week, according to information seen by the specialized energy platform.
Crude oil prices today
By 7:00 am GMT (10:00 am Mecca time), Brent crude futures – for May 2023 delivery – recorded gains of 24 cents, or 0.28%, to reach $ 86.42 a barrel.
US West Texas crude – for delivery in April 2023 – increased by 23 cents, or 0.29%, to reach $80.69 per barrel, after achieving 1% gains at the end of yesterday’s sessions, according to what was seen by the specialized energy platform.
Brent crude prices are heading on the right track, as they rise for the sixth consecutive session, 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
Traders await Chinese oil trade data for January and February later on Tuesday, looking for signs of a recovery in demand, after Beijing lifted its strict pandemic restrictions late last year.
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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