The price of a barrel of oil rose globally at the end of trading today, Tuesday, January 17 (2023), amid hopes for an increase in fuel demand, as US crude exceeded the $80 barrier for the first time in two weeks.
Oil markets are facing volatile dealings, after China recorded its weakest annual economic growth in nearly half a century, in conjunction with hopes for a recovery in fuel demand this year, after easing Corona measures since late 2022.
The global price of a barrel of oil today
At the end of trading, the prices of benchmark Brent crude futures – for delivery in March 2023 – rose by about 1.7%, to $85.92 a barrel.
On the other hand, the price of US West Texas crude futures – for February delivery 2023 – rose by 0.4%, to $80.18 a barrel, the highest level in two weeks, according to data viewed by the specialized energy platform.
No settlement was reached for WTI on Monday due to the public holiday in the United States for Martin Luther King Day, while Brent crude recorded a loss of about 1%.
OPEC report
The monthly report showed that OPEC oil production increased by 91 thousand barrels per day during December 2022, to reach 28.971 million barrels per day.
While OPEC kept expectations for global oil demand growth unchanged at 2.22 million barrels per day during 2023, and estimates of oil supply from outside it remained unchanged at 1.54 million barrels per day.
Oil market conditions
“Brent crude has risen around 10% over the past 10 days, as optimism about China’s reopening boosted sentiment,” ANZ commodities analysts said, in a note to clients.
“However, the outlook for the rest of the global economy is uncertain,” they added, according to Reuters.
ANZ also cited a jump in crude oil supplies from Russia affecting the market, as seaborne exports rose to 3.8 million barrels per day last week, the highest level since April.
China’s GDP rose 3% in 2022, far behind the official target of 5.5%, marking the second-worst performance since 1976, as the last quarter was hit hard by strict coronavirus restrictions and a downturn in the real estate market.
Weak economic data still beat analysts’ previous expectations, as Beijing’s reversal of its coronavirus-free policy in December boosted consumption.
demand in China
Data released on Tuesday also showed that oil refinery output in China in 2022 fell 3.4% from a year earlier, its first annual drop since 2001, although daily oil production rose in December to the second-highest level in a year. 2022.
“With a stronger finish to 2022 than we had anticipated, as well as indications of stronger retail spending ahead, the outlook for China’s GDP growth in 2023 has improved compared to our previous forecasts,” said ING Chief Economist Iris Pang.
But Pang warned that China still faces significant headwinds, including possible recessions in the United States and Europe this year.
Economic recession
In a poll released at the Davos World Economic Forum, two-thirds of the private and public sector economists surveyed predicted a global recession this year, with around 18% believing it to be “very likely”.
The PwC CEO survey was the bleakest since the company launched the poll a decade ago.
The rise of the dollar from its lowest level in 7 months also put pressure on the price of a barrel of oil globally, as the rise in the dollar makes oil more expensive for those who own other currencies.
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