Oil futures closed lower on Thursday (16) pressured by data on producer inflation (PPI) in the United States, which indicated that the Federal Reserve (Fed, the US central bank) may continue raising interest rates, which could lead the American economy into a recession and harm demand for the commodity. Also on the radar, the reopening of China is not yet offering expected signs of demand, analysts point out.
On the New York Mercantile Exchange (Nymex), WTI oil for April 2023 closed down 0.11% (US$0.09), at US$78.74 a barrel, while Brent for April, traded on the Intercontinental Exchange (ICE), fell 0.28% ($0.24) to settle at $85.14 a barrel.
In a volatile session, oil came to operate at a high, however it was pressured by the strong dollar against rivals during part of the trading session and by fear of a recession in the United States.
In addition, investors are still digesting the huge growth in US oil inventories. CMC Markets reckons that uncertainty about demand from China and high inventory levels in the US, reported on Wednesday, help keep prices under control in the short term.
Oanda analyst Edward Moya points out that it will be difficult for oil prices to “expand” until the Chinese reopening offers clear signs that it is reaching the expected level.
On the other hand, according to TD Securities, the market’s internal conflict over the growth of inventories and the prospect of strengthening demand should continue to guide oil negotiations.
“The reopening of China is leading the charge, as an increase in flight schedules and mobility continues to support the view that energy demand will be a bright spot in the commodity complex,” notes the investment bank.
Source: CNN Brasil
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