During today’s trade on Thursday, November 9 (2023), oil prices rose in an attempt to recoup some of the losses incurred in the previous two sessions.
It comes as markets ignore signs of deflation in China and look for more evidence of a demand situation from the world’s biggest oil consumer.
Yesterday, Wednesday, November 8, oil prices ended trading up 2.5%, extending losses after a sharp decline in yesterday’s session and recording their lowest level since mid-July.
Oil price today
As of 07:01 AM GMT (10:01 AM Mecca time), Brent crude oil futures – for January 2024 delivery – rose 0.67% to $80.07 a barrel.
At the same time, US West Texas Intermediate crude futures – for December 2023 delivery – rose 0.56% to $75.75 a barrel, according to figures seen by the specialist energy site.
Oil prices rallied after the two main crudes fell more than 2% since mid-July yesterday, as worries about a potential supply disruption in the Middle East eased and worries about the US and China rose. Request
Oil price analysis
“The quiet gains reflect pre-existing reservations as macroeconomic and technical factors give sellers the upper hand for now,” said Yip Jun Rong, IG market strategist.
He said Thursday’s gains reflected an attempt to stabilize oil prices after a strong sell-off in previous days. Reuters.
Meanwhile, Chinese inflation data released on Thursday showed CPI for October fell 0.2% year-on-year, while producer price index data fell 2.6% year-on-year.
That was in line with a Reuters poll forecast for a 0.1% decline in the CPI and a 2.7% decline in the producer price index.
China’s total exports of goods and services shrank faster than expected, customs data showed earlier this week, despite the country’s strong crude oil imports in October.
Oil is required
On the positive side for oil demand, China’s central bank governor Pan Gongsheng said the country is expected to meet its 5% annual growth target this year.
For the US, inventory data may indicate weak demand; US crude stockpiles rose by 11.9 million barrels in the week ended November 3, the sources said, citing figures from the American Petroleum Institute.
If confirmed; That would mark the biggest weekly increase since February, however, as the US Energy Information Administration delayed the release of weekly oil inventory data until November 15 in order to update the system.
For its part, Barclays on Wednesday cut Brent crude oil prices by $4 to $93 a barrel in 2024, pointing to the flexibility of US oil supplies and a rise in Venezuelan output after the easing of sanctions on the Latin American producer. .
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