On the followingnoon of January 16, Asian oil prices fell, although still near the highest level in 2023, as the increase in the number of COVID-19 cases in China “shadowed” the demand outlook.
At 2:45 p.m. Vietnam time, the price of Brent oil fell 62 US cents (0.7%) to $84.66 per barrel, while the price of New York light sweet oil fell 51 US cents (0.6%) to 79.35 USD/barrel.
Both WTI and Brent crude oil prices fell as investors assess the growing number of COVID-19 cases in China might create a roadblock, said Priyanka Sachdeva, analyst at financial firm Phillip Nova. during the return to normal state.
Analyst Sachdeva said that cautious sentiment is dominating the oil market amid doubts regarding the US Federal Reserve’s (Fed) interest rate hike cycle, the unexpected increase in US crude stockpiles. and outlook The International Energy Agency (IEA) may revise its outlook for oil prices and demand for the good year.
Both major oil commodities rose more than 8% last week, their biggest weekly gains since October. This prompted some profit-taking selling. Traders say that although prices have dropped following last week’s spike, they are still close to 2023 highs.
China’s crude oil imports rose 4% year-on-year in December 2022, while travel demand during the Lunar New Year holiday will rebound.
Analysts of ANZ bank (Australia) assess that traffic levels in China are continuing to recover from record lows following the easing of restrictive policies due to the COVID-19 epidemic, leading to demand for cars. stronger crude oil and petroleum products.
The Organization of the Petroleum Exporting Countries (OPEC) and the IEA will release their monthly reports this week. Investors are awaiting these reports to keep a close eye on the global supply and demand outlook
