Oil prices have risen again in response to signs of increased fuel demand in the United States.

Oil prices rose slightly on Wednesday as data showed firm fuel demand in the United States, providing some relief after a 5% drop the previous day on fears of demand being harmed by increased China COVID-19 curbs and central bank interest rate hikes.

A slightly weaker US dollar also supported the market, making oil cheaper for buyers holding other currencies.

WTI crude CLc1 futures in the United States rose 90 cents, or 1%, to $92.54 per barrel at 0306 GMT, after falling $5.37 the previous session due to recession fears.

Brent crude LCOc1 futures for October, which expire on Wednesday, rose 70 cents, or 0.7%, to $100.01 a barrel, reversing a $5.78 loss on Tuesday. LCOc2, the more active November contract, was up 96 cents, or 1%, at $98.80 per barrel

Since the Ukraine conflict began six months ago, price swings have rattled hedge funds and speculators and thinned trading, causing the market to whipsaw even more, as seen on Tuesday.

"I can't emphasize enough that the lack of liquidity means we're in for some volatile moves," Commonwealth Bank commodities analyst Vivek Dhar said.

The American Petroleum Institute (API) reported on Wednesday that gasoline inventories fell by about 3.4 million barrels, while distillate stocks, which include diesel and jet fuel, fell by about 1.7 million barrels for the week ended Aug. 26 API/S.

The drawdown in gasoline stocks was nearly triple the 1.2 million barrel drop predicted by eight Reuters polled analysts. They expected a 1 million barrel drop in distillate inventories.

However, according to API data, crude stocks increased by about 593,000 barrels, compared to analysts' expectations of a drop of about 1.5 million barrels.

Concerns that some of China's largest cities, from Shenzhen to Dalian, are imposing lockdowns and business closures to combat COVID-19 at a time when the world's second-largest economy is already experiencing slow growth capped price gains.

"Worsening COVID-19 outbreaks in China are also weighing on sentiment," ANZ Research analysts wrote in a note.

On the supply side, three sources told Reuters on Tuesday that oil exports from Iraq were unaffected by the worst violence in Baghdad in years. Clashes subsided on Tuesday after powerful cleric Moqtada al-Sadr ordered his supporters to stop protesting.

The main factor supporting prices at the moment is talk from members of the Organization of Petroleum Exporting Countries and allies, known collectively as OPEC+, of cutting output to stabilize the market. The next OPEC+ meeting is scheduled for September 5.

2022's Best Safe Investments

"They'll jawbone," Dhar predicted. "They'll try to point out that futures prices don't accurately reflect true tightness. However, getting everyone to agree to reduce output is another challenge."

Comments

Sandbox adds FaZe Clan as a member Sandbox adds FaZe Clan as a member

With a new partnership with the leading Web3 company The Sandbox, eSports, lifestyle, and media company FaZe Holdings Inc (NASDAQ: FAZE) is heading to the metaverse. The decentralized metaverse business The Sandbox, which is part of Animoca Brands, has announced a partnership with the North American gaming and esports organization FaZe Clan. Through this agreement, FaZe Clan will set up a virtual territory called FaZe World and enter the metaverse. In the release, it says that FaZe and Sandbox will work together to create new ways to make money and to host events and other experiences in FaZe World. "Faze Clan into metaverse" is a joint project between: The FaZe Clan will make FaZe World, a 12-by-12-foot virtual plot in the Sandbox metaverse. "Part virtual real estate and part amusement park," say the two companies, is how they describe the world. To back up this idea, they plan to build digital infrastructure. In FaZe World, FaZe and Sandbox will host virtual event

Asian currency bears retreat as the outlook for inflation improves.

According to a fortnightly poll of 12 analysts, short positions on all emerging Asian currencies fell, with bets on China's yuan at their lowest since late April. Short positions in the Philippine peso, Singapore dollar, and Indonesian rupiah all hit multi-month lows. An unchanged July inflation print in the United States, the first notable sign of relief after years of rising prices, also helped boost sentiment in the region. Short bets on the Thai baht fell to their lowest level since early June after the Bank of Thailand (BoT) raised its interest rate by 25 basis points on Wednesday, resuming its tightening cycle after trailing regional peers. Thailand, whose economy is heavily reliant on tourism, has begun to show signs of a gradual economic recovery as tourists return, allowing the BoT to adjust its monetary policy. Analysts widely anticipate that the BoT will maintain gradual policy normalisation throughout the rest of the year. The baht, one of the least shorted currencies

Soft demand lowers China's producer prices and consumer inflation.

China's factory-gate prices fell for a second month in November, but consumer inflation slowed, reflecting poor activity and tepid demand in a pandemic-slowed economy. Analysts anticipate the government to maintain rates low and create confidence. According to Friday's National Bureau of Statistics (NBS) data, the producer price index (PPI) was down 1.3% from a year earlier. Reuters had predicted a 1.4% drop. The November CPI grew 1.6% from a year earlier, slower than October's 2.1% annual growth but in line with a Reuters survey. "These figures show economic momentum (continues) to decline," said Pinpoint Asset Management's Zhiwei Zhang. In 2023, the government will focus on stabilizing growth, boosting domestic demand, and opening up to the globe, according to a Politburo meeting on Tuesday. Zhang said the government would take further steps to boost the economy despite easing pandemic controls last week. "The Politburo highlighted low confidence as an

Meta Financies

Search This Blog