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Posted on: Monday, January 23, 2023 – 1:17 PM | Last update: Monday, January 23, 2023 – 1:17 PM
Global oil prices stabilized after investors assessed the expectations of higher demand in the wake of the reopening of the Chinese economy, the decline in the value of the dollar, and the increasing focus on risks to Russian energy supplies in light of imminent new restrictions.
Bloomberg news agency reported today, Monday, that US West Texas Intermediate crude settled above $81 a barrel, after two weeks of gains that pushed the US benchmark to its highest close since mid-November.
While the weakness of the US currency boosted crude oil prices on Monday, trading volumes fell in Asia, in light of national holidays marking the Lunar New Year in many major markets, including China and Singapore.--
China’s departure from the zero Covid policy reinforced expectations of increased consumption in the world’s largest oil importer.-
Oil got off to a weak start to the new year, moving higher as the outlook for China improved.
Oil prices also boosted expectations that the US Federal Reserve “central bank” is about to end its aggressive series of interest rate hikes, which weakened the value of the US currency.
Dealers are also assessing the impact of additional restrictions on Russian energy flows as the Russian-Ukrainian war continues.