WTI crude futures rose more than 2% to $75 on lower-than-expected release of the Consumer Price Index (CPI). This will be a factor that encourages the US Federal Reserve (Fed) to slow down the rate hike.
At 10:53 p.m. Thai time, West Texas Crude Oil Contract (WTI) for delivery in January. which traded on the NYMEX plus $ 1.93, or 2.64%, to $ 75.10 / barrel.
Investors add to their expectations that The Fed will raise interest rates by only 0.25% in February 2023. This is the Fed’s first monetary policy meeting next year. After revealing lower-than-expected inflation numbers today
Oil prices benefited from the dollar’s depreciation. After revealing the lower-than-expected CPI index today. The weakening of the dollar will increase the attractiveness of the contract. This makes oil contracts cheaper for holders of other currencies.
In addition, oil prices were also supported by tightness in the market. After the Canadian energy giant TC Energy announced the closure of the Keystone pipeline. due to an oil leak Keystone is an oil pipeline from Alberta, Canada, to the Gulf Coast and Midwestern United States.
At the same time, investors hope that China will reopen the country. After the measures to control COVID-19 are relaxed. continually which will increase demand for oil
Goldman Sachs released a report expecting The demand for oil in China has increased following opening up the country. Will be a factor driving oil prices in the world market to rise another $ 15 / barrel.
“China’s oil demand will increase by 1 million barrels per day on average from 2022 to 2023,” the report said.
Bloomberg News reported that China’s relaxation of COVID-19 control measures Has resulted in the rapid recovery of the domestic aviation industry and help ease the financial crisis of China’s three major airlines following suffering billions of dollars in losses since the outbreak of COVID-19.
Investors will be keeping an eye on the American Petroleum Institute (API) US crude inventories release today, while the US Energy Information Administration (EIA) will release tomorrow. Analysts expect U.S. crude inventories to fall by 3.9 million barrels last week.