Oil prices rose more than 3% on Tuesday (7), after the governor of the US central bank calmed market concerns about interest rate hikes, while the recovery of demand in China also boosted prices. .
Brent crude futures gained $2.70, or 3.3%, to settle at $83.69 a barrel, while U.S. crude (WTI) futures added $3.03, or 4.1%. % to $77.14 a barrel.
US Federal Reserve Chairman Jerome Powell said on Tuesday that very strong jobs data released last week simply asserted that the central bank has some way to go to raise rates.
While declining to say whether prior knowledge of the strength of the data would have affected last week’s 25 basis point rate hike, Powell told the Economic Club of Washington that the January employment numbers show “why this will be a process that takes a significant period of time” when it comes to tightening monetary policy.
The US dollar index fell after the data, pushing oil prices higher. Interest rate increases typically strengthen the dollar, which can make oil more expensive for buyers outside the US.
The forecast of stronger demand in China also lifted oil prices on Tuesday. The International Energy Agency expects half of the growth in global oil demand this year to come from China, the agency’s head said on Sunday, adding that demand for jet fuel is rising.
Source: CNN Brasil
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