Oil prices rose on hopes that China’s demand will recover
17 January (Reuters) – Oil fell after China posted weak but better-than-expected annual economic growth data and on hopes that a recent change in COVID-19 policy will boost fuel demand. prices It rose in choppy trading on Tuesday.
Brent oil futures 1.46 dollars or 1.7% increase to 85.92 dollars, USAWest Texas Intermediate (WTI) rose 32 cents, or 0.4%, to 80.18 dollars has been Monday USANo solution as it is a public holiday for Martin Luther King Day in way not found.
China’s gross domestic product expanded 3% in 2022, missing the official target of “about 5.5%” and the second-worst since 1976. But after China withdrew its zero-Covid policy in December, the data again beat analysts’ forecasts.
“China is making the best of its economic data, and it’s fair to say it could be worse,” said Bob Yawger, director of energy futures at Mizuho.
However, according to a Federal Reserve survey on Tuesday, New York state manufacturing january fell sharply in 2018 due to a collapse in orders and stalled employment growth, and little progress was expected over the next six months.
“The question is how the Federal Reserve will respond to such mixed economic indicators,” said John Kilduff, a partner at Again Capital LLC in New York.
Oil eased against most major currencies on Tuesday on expectations of a possible Bank of Japan policy change. USA supported by dollars.
A weaker dollar makes dollar-denominated oil cheaper for holders of other currencies.
China’s oil refinery output in 2022 was released on Tuesday 20It showed a 3.4% decline from a year earlier for its first annual decline since 01, although daily December oil output rose to the second-highest level of 2022.
PVM analyst Tamas Varga said, “In December, the country’s crude oil import increased by 4%, and a significant increase in the demand for transportation fuel… is expected when the Lunar New Year begins on Sunday.”
The Organization of the Petroleum Exporting Countries (OPEC) said in its monthly report that China’s oil demand will increase by 510,000 barrels per day this year, while the global demand growth forecast for 2023 remained unchanged at 2.22 million barrels.
The International Energy Agency’s (IEA) monthly report on Wednesday will shed more light on the strength of oil demand as recession fears mount.
In a survey released at the annual World Economic Forum in Davos, two-thirds of private and public sector economists surveyed said they expect a global recession this year.
The survey of CEOs by PwC was the saddest since it was conducted a decade ago.
Additional reporting by Shadia Nasralla in London, Sonali Paul in Melbourne and Muyu Xu in Singapore Editing by David Goodman, Will Dunham and Bernadette Baum
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Laura Sanicola
2023-01-18 06:09:13
Source – reuters
Translation“24 HOURS”