The most liquid oil futures contracts closed this Tuesday (28) at a high, recovering yesterday’s losses, benefiting from the weakness of the dollar against rivals and the prospect that the progress of China’s reopening will increase demand for the commodity.
In addition, the commodity was helped by the Department of Energy (DoE) report, which showed a drop in oil production in the United States.
On the New York Mercantile Exchange (Nymex), WTI oil for April 2023 closed up 1.81% ($1.37), at $77.05 a barrel, while Brent for May, traded on the Intercontinental Exchange (ICE), closed up 1.79% (US$ 1.41), at US$ 83.45 a barrel.
In the month, however, WTI fell by 2.30% and Brent by 1.24%.
According to TD Securities, the market is optimistic about the reopening of China, which should make oil demand higher, valuing the price of a barrel. The country’s economic return was also mentioned as a beneficial factor for oil by SPI Asset Management, in a note.
According to the consultancy, the data from the purchasing managers’ index (PMI, the acronym in English) of the industry in China, which will be published today, should be closely watched by investors, in search of new signals about the demand for oil.
In addition, oil also benefited from the news that US production dropped by more than 200,000 barrels in December compared to November, indicating less oil supply.
However, according to TD Securities, the fragility of the outlook together with the uncertainties about interest rate hikes by the Federal Reserve (Fed) may limit the rise in the commodity market “for now”.
Craig Erlam, economist at Oanda, points out that it is still necessary to wait for next week’s data to test the consistency of highs – or lows – in the price of the commodity, “as uncertainty seems to be preventing a serious movement in any direction”.
Source: CNN Brasil
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