The most liquid oil contracts closed higher in the futures market this Tuesday (25). The appreciation of the commodity was due to the weakening of the dollar against rivals and greater appetite for risk in negotiations. Reminders that the oil market is tight followed investors’ radar.
December WTI crude closed up 0.87% ($0.74) at $85.32 a barrel on the New York Mercantile Exchange (Nymex), while Brent for January 2023 rose 0.58 % (US$0.53), at US$91.74 a barrel, on the Intercontinental Exchange (ICE).
Risk appetite helped keep oil positive this session, with the dollar’s rally hitting a “wall”, which should boost all commodities, says Oanda analyst Edward Moya. “Oil prices rose after constant reminders that the market is still tight.
Saudi Arabia’s Energy Minister (Prince Abdulaziz bin Salman) noted that they need to keep available oil capacity,” Oanda exemplified.
Commerzbank, in turn, highlights that among China’s data published on Monday (24), indicators for September showed that the Asian country imported about 9.8 million barrels per day (bpd) – the highest amount in one month since May and about 1 million bpd above the comparison between July and June.
Even so, oil imports since the beginning of the year are still 4.3% below the same period last year.
“The last time this happened was three years ago. In any case, China is expected to register a drop in oil imports for the second year in a row, despite signs of a pick-up in the most recent two months and the fact that higher imports are expected to come in the coming months”, predicts the German bank.
Traders await the publication of US oil stock data by the American Petroleum Institute (API) later this afternoon.
Source: CNN Brasil
Joe Jameson, a technology journalist with over 2 years of experience, writes for top online news websites. Specializing in the field of technology, Joe provides insights into the latest advancements in the industry. Currently, he contributes to covering the world stock market.
