2023-07-20 03:30:17
Oil rises with the decline of the dollar and China’s pledges to support the growth of its economy
Oil prices rose in early Asian trading, Thursday, supported by the decline in the dollar and the decline in US crude oil inventories, in addition to pledges by China, the second largest economy in the world, to support its economic growth.
Data from the Energy Information Administration showed, on Wednesday, that US crude stocks fell by 708 thousand barrels last week to 457.4 million barrels, compared to analysts’ expectations in a Archyde.com poll, for a decrease of 2.4 million barrels.
The data showed an increase in the strategic reserve of oil for the first time since January 2021, with the United States trying to refill the reserves, following declining at a record rate last year.
On the demand side, the market is waiting to see what steps China takes to boost growth following the chief economic planner pledged to implement policies to “restore and expand” consumption in the world’s second largest economy, which might boost demand for oil.
China pledged on Wednesday to support the private sector to become “bigger, better and stronger” through a series of measures aimed at helping private companies and boosting the sluggish post-pandemic recovery.
In another positive sign, European Central Bank Governing Council member Claes Nott indicated that a rate hike following its meeting next week is “by no means certain.”
Meanwhile, Russia’s Energy Ministry said Russia is expected to cut its oil exports by 2.1 million metric tons in the third quarter of the year, in line with a planned voluntary cut in exports of 500,000 barrels per day in August.
price move
Brent crude futures rose 12 cents, or 0.15%, to $79.58 a barrel by 0315 GMT, while US West Texas Intermediate crude rose 6 cents, or 0.08%, to $75.41 a barrel.
Oil prices had incurred losses in the previous session, affected by the rise in the dollar, and the dollar index rose on Wednesday, following the release of inflation data in the United Kingdom, which fell more than expected in June to the slowest pace in more than a year at 7.9 percent.
A strong dollar makes crude oil more expensive for investors holding other currencies.
Natural gas markets strange development!
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