2024-01-23 07:08:24
Faltering economic recovery in China raises concerns regarding global demand for oil (Getty)
There was little change in oil prices today, Tuesday, as traders are studying a group of disturbing and conflicting data on the levels of supply and demand, with increasing tension in the Middle East region and problems related to cold weather that cause production disruption in the United States.
By 03.53 GMT, Brent crude futures fell two cents to $80.04 per barrel, while US West Texas Intermediate crude futures fell in the latest trading by one cent to $74.75 per barrel.
The two crude oil prices rose by regarding 2% yesterday, Monday, as a Ukrainian drone attack on the Novatek company’s Ust Luzha fuel export station raised concerns regarding supplies and subsequently increased prices.
Analysts expect Novatek to largely resume operations there within weeks.
Analysts from ANZ Research said in a report that while the loading docks at the terminal were damaged, it “briefly affected exports,” but this move raises the possibility of the Russian-Ukrainian war moving to a new phase, with both sides targeting the infrastructure. Major energy infrastructure.
In the Middle East, American and British forces carried out a new round of strikes targeting an underground Houthi storage site and missile and surveillance capabilities used by the Iran-aligned Houthi group.
The attacks launched by the Houthis on ships in and around the Red Sea region disrupted global shipping traffic and raised fears of inflation.
The Houthi attacks in the Red Sea on ships heading to Israeli ports come in solidarity with the Palestinians who are being subjected to a brutal Israeli war in the Gaza Strip.
Some analysts remain optimistic regarding near-term market fundamentals due to these ongoing struggles.
“Without any concerns regarding a recession, the impact of severe weather on US oil production and the escalation of geopolitical conflicts continue to support oil prices,” said Leon Li, an analyst at CMC Markets in Shanghai.
The state’s pipeline administration said yesterday, Monday, that 20% of oil production in the state of North Dakota in the United States remained halted due to extreme cold and operational difficulties.
But what pressured the markets were concerns regarding the faltering economic recovery in China, which raises concerns regarding global demand for oil given that the Asian giant is the largest importer of crude oil in the world.
Chinese policymakers have introduced a range of measures to support the economy, but domestic consumption remains lackluster, which makes oil traders nervous regarding the prospects for demand.
(Archyde.com)
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