Crude oil prices rise 2%… and Brent is above $82 – (Update)

Crude oil prices rise 2%… and Brent is above $82 – (Update)

Crude oil prices rose by about 2%, at the end of today’s trading, Thursday, February 23 (2023), to rise for the first time in 7 consecutive sessions, with the release of the inventory report in the United States.

Market players are re-evaluating their positions after the US Federal Reserve stoked concerns about the economy by proposing more interest rate hikes in the future.

Crude oil prices today

At the end of the session, the prices of benchmark Brent crude futures – for delivery in April 2023 – rose by 2%, to reach $82.21 per barrel.

The price of US West Texas crude futures – delivery in April 2023 – increased by 2%, to $ 75.39 a barrel, according to data viewed by the specialized energy platform.

And crude oil prices ended their dealings, yesterday, Wednesday, February 22, with a decline of more than 3% due to fears of a decline in demand, amid expectations of sharp increases in interest rates.

Crude oil prices
Kozmino crude oil terminal in Russia – Photo courtesy of Reuters

Economic recession

The minutes of the last meeting of the US Federal Reserve, yesterday, Wednesday, showed that the majority of Federal Reserve officials agreed that the risks of high inflation remain a major factor in shaping monetary policy and ensuring the continuation of raising interest rates until they are controlled.

Policymakers also suggested that shifting to smaller elevations would allow them to calibrate more closely with incoming data.

Analysts from Haitong Futures said investors are re-evaluating the energy market, assessing prospects for revival of Chinese demand and tepid consumption in the United States and other developed economies.

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In order to provide some support for crude oil prices, Russia plans to cut oil exports from its western ports by up to 25% in March compared to February shipments, exceeding announced production cuts of 500,000 barrels per day.

US oil stocks

Indicators of an increase in US crude inventories limited the gains in crude oil prices, as crude oil and fuel inventories in the United States increased by 7.6 million barrels last week, according to the US Energy Information Administration.

US oil inventories have been rising weekly since mid-December; This raised investor concerns about demand.

A Reuters poll had expected an increase of 2.1 million barrels in crude inventories last week.

On the other hand, gasoline inventories in the United States decreased by 1.9 million barrels during the past week.


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