The price of Brent crude rose by 0.9 percent, to exceed $83.7 a barrel, while the US crude price rose 0.8 percent, approaching the level of $77 a barrel, to surpass the longest series of declines this year..
Brent and West Texas Intermediate crude closed down about four percent last week after the United States announced an increase in crude oil and gasoline stocks..
The oil markets are still confused, between signs of a recovery in Chinese demand that support prices, but at the same time there are fears of the Federal Reserve’s trend towards more monetary tightening, which limits oil gains..
The lack of investment in exploration and production raises concerns about future oil supplies, especially as major producers keep production limits as they are..
Baden Moore, head of commodities research at the National Australia Bank, said that Washington’s announcement last week of plans to withdraw 26 million barrels of crude oil from the Strategic Petroleum Reserve increased downward pressure on the market, but global supplies appeared “stable to low” compared to the previous similar period after the situation in Consideration of production cuts by Russia and the OPEC alliance+.
“The reopening of the Chinese economy could lead to a bout of bullishness at some point in the coming weeks,” said Vandana Hari, of Vanda Insights.“.
Oil has had a bumpy start since early 2023 as investors grapple with lingering concerns about the global economic slowdown and optimism about China’s reopening..
The repercussions of sanctions on Russian energy and the diversion of global flows have added another element of uncertainty to the global market.
The United States plans to impose new export controls and new sanctions on Russia, targeting key industries, after a year of war with Ukraine. The measures will target the country’s defense and energy sectors, financial institutions and many individuals, according to Bloomberg.
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