A slight rise in oil prices, driven by the easing of Corona restrictions in China

A slight rise in oil prices, driven by the easing of Corona restrictions in China
A slight rise in oil prices, driven by the easing of Corona restrictions in China
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China showed signs of buying more crude oil (AFP)

Crude oil prices rose slightly in early Asian trading today, Tuesday, in a market focused on the prospects for recovery in Chinese demand, the world’s largest oil importer, and the global economic outlook ahead of the company’s earnings.

Brent crude rose five cents to $88.24 a barrel by 01:16 GMT, while US West Texas Intermediate crude rose 13 cents to $81.75 a barrel.

Crude oil prices in physical markets started the year higher, as China, which is no longer operating under Corona restrictions, showed signs of more buying, and traders feared that sanctions imposed on Russia could lead to tighter supplies.

Investors returned to oil futures contracts at the fastest rate in more than two years as fears of a global business cycle contraction receded.

US investors are pretty sure that the Federal Reserve will implement a small increase in interest rates next week, even as it continues its commitment to reining in inflation, which recent data shows is slowing.

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This week, traders are watching for more business data, which could indicate strength in global economies during earnings reporting season.

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At the end of last week’s trading, oil prices recorded gains for the second week in a row, supported by optimistic economic prospects for China, which reinforced expectations of an increase in demand in the second largest economy in the world.

The price of Brent crude at the end of Friday’s trading was $87.63 a barrel. US crude prices rose to $81.31 a barrel

And the International Energy Agency said, last Wednesday, that lifting the restrictions imposed to limit the outbreak of Covid-19 in China will lead to an increase in global demand to a record level this year, a day after the Organization of the Petroleum Exporting Countries (OPEC) expected a recovery in Chinese demand in 2023. .

(Reuters, The New Arab)

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