© Archyde.com. Pumps at work in one of the oil fields in Midland, Texas, USA. Photo from Archyde.com archive
(Archyde.com) – It steadied on Wednesday as investors awaited comments from the Federal Reserve on economic data indicating the possibility of an interest rate hike, which might lower economic growth and curb global demand for fuel.
Crude futures for April delivery, two years, rose to $83.07 a barrel by 0242 GMT, following falling 1.2 percent on Tuesday. West Texas Intermediate crude futures for April fell a cent to $76.35 a barrel. The March WTI contract expired on Tuesday, down 18 cents.
The Federal Reserve will release the minutes of its last meeting on Wednesday, which will give dealers a glimpse into how top officials expect interest rates following recent data showed labor market strength and consumer price hikes outperformed expectations.
However, other economic reports from the United States, the world’s largest oil consumer, showed some worrying signs. Existing home sales in January fell to their lowest level since October 2010, the 12th monthly decline, and the longest straight period since 1999.
“Oil prices are under pressure… as weak economic data raised concerns regarding demand in advanced economies. Further interest rate hikes might dampen demand for oil,” Daniel Hynes, senior commodities analyst at ANZ Bank, said in a note. .
It tends to rise in light of rising interest rates, making the oil in which it is priced more expensive for holders of other currencies.
Expectations of dwindling global supplies and increased demand from China have supported oil prices recently. Analysts expect China’s oil imports to reach a record level in 2023 to meet growing demand for transportation fuels and as new refineries come online.
Heinz of (ANZ) noted that PetroChina and Unipec, the trading arm of Sinopec, the largest oil refining company in Asia, have booked ten supertankers to import oil from the United States next month, which is equivalent to regarding 20 million barrels of crude.
(Prepared by Ali Khafaji for the Arabic Bulletin)
