Completion of drilling the first well in the East Baghdad field
Friday – 17 Shaaban 1444 AH – 10 March 2023 AD Issue Number [16173]
London: «Asharq Al-Awsat»
Oil prices stabilized on Thursday, after falling for two days, amid disruptions to fuel supplies in France, declines in US crude stocks, and a decline in the dollar, factors that offset the effects of fears of the economic repercussions of high interest rates.
Total Energies was unable to send any fuel from its refineries in France yesterday due to the strike, a day after data showed an unexpected drop in US crude inventories last week.
The suspension of deliveries from those refineries and the slight decline in the dollar is likely to attract some buying to cover short positions, Tamas Varga of BVM Oil Brokerage told Archyde.com, adding that expectations of further interest rate hikes limit any gains. probably.
Brent crude rose five cents to $82.71 a barrel by 13:05 GMT, while US West Texas Intermediate crude rose six cents to $76.72, and the two crudes fell between four and five percent over the past two days.
Markets continued to be affected by comments from Federal Reserve Chairman Jerome Powell this week about the potential need to raise interest rates more than previously expected, in response to the recent strong data.
A weaker dollar would make oil less expensive for buyers holding other currencies, and boost investors’ appetite for risk. Crude Oil also got a boost from expectations of rising Chinese demand.
With China’s crude imports declining 1.3 percent in the first two months of 2023 on an annual basis, analysts pointed to the increase in imports in February as an indication of the recovery in fuel demand after China lifted anti-Covid-19 restrictions.
In addition, the Iraqi Drilling Company announced the completion of drilling the first well in the southern eastern Baghdad field, noting that the well is the first to be accomplished by the company within the project of drilling 27 oil wells in the southern eastern Baghdad field.
Yesterday, the dollar settled near the highest level in three months, supported by the message broadcast by the Chairman of the Federal Reserve – the US Central Bank – Jerome Powell about the need for more interest rate hikes, perhaps at a faster pace than what investors previously expected.
The yuan fell after China announced unexpectedly low inflation.
The dollar index fell 0.1 percent to 105.44 points, but remained near the highest level in three months at 105.88, which was recorded the day before yesterday, Wednesday.
It fell in the latest trading by 0.8 percent against the yen to 136.29, while the euro and the pound sterling rose against it.