Home Business Crude oil Asian market: U.S. oil stabilizes after plunging 4% as strong U.S. economic data spooks market provider Investing.com

Crude oil Asian market: U.S. oil stabilizes after plunging 4% as strong U.S. economic data spooks market provider Investing.com

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Crude oil Asian market: U.S. oil stabilizes after plunging 4% as strong U.S. economic data spooks market provider Investing.com
© Reuters. Crude oil Asian market: U.S. oil stabilizes after plunging 4% as strong U.S. economic data spooks markets

Investing.com – In Asian afternoon trading on Tuesday (6th), oil prices rose slightly, and some investors bought on dips. In the previous trading day, oil prices fell sharply due to market concerns about rising interest rates, with U.S. oil falling 4% and Brent oil falling more than 3%.

The crude oil market was sold off again on Monday (5th), as stronger-than-expected U.S. economic data exacerbated market concerns about high inflationary pressures. pressure.

The data showed a rise to 56.5, well above market expectations of 53.5, a strong reminder that the Fed’s work is not done.

Yesterday’s sharp losses erased recent gains on expectations of a pick-up in demand from China, the world‘s largest oil importer. Prior to this, many cities in China optimized epidemic prevention and control measures, and production and living activities gradually resumed.

As of 13:16 Beijing time (00:16 am Eastern Time), Investing.com Commodity Markets showed: up 38 cents, or 0.49%, to $77.31 per barrel; up 40 cents, or 0.48%, At $83.08 a barrel. It was down 0.02 percent at $5.62.

Optimism about Chinese demand briefly boosted oil prices earlier this week, but uncertainty over Western oil price caps on Russian oil capped gains.

The U.S.- and European Union-led price cap came into effect on Monday and capped Russian crude prices at $60 a barrel. Russia said it would not accept the price cap and was preparing a response.

Earlier reports said Russia would fight price caps by cutting production, a move that could strain global crude supplies. However, OPEC+ has announced over the weekend to keep production steady for the time being.

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At present, the focus is shifting, and most analysts expect to raise interest rates by 50 points. Before that, analysts expected oil prices to remain range-bound.

However, while the Fed signaled it would scale back rate hikes, the bank also warned that U.S. interest rates could peak much higher than expected, especially if inflation persists.

Within days, the U.S. Energy Information Administration (EIA) will also release its monthly short-term energy market outlook report.

[This article is from Yingwei Caiqing Investing.com, to read more, please log in to cn.investing.com or download Yingwei Caiqing App]

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Compiler: Liu Chuan

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