New York West Texas Intermediate (WTI) crude futures closed more than 2% higher on Tuesday (Apr 11), supported by a weak dollar. Including the expectation that the Chinese government will issue measures to stimulate the economy. following China releases data indicating weakness in domestic demand.
- The WTI crude oil contract is delivered in May. It was up $1.79, or 2.24%, at $81.53/barrel.
- The Brent crude oil contract (BRENT) is delivered in June. It was up $1.43, or 1.70%, at $85.61/barrel.
China’s National Bureau of Statistics (NBS) reports that the Consumer Price Index (CPI), which measures inflation driven by consumer spending, It was up just 0.7% in March year on year. That was slower than February’s 1% and below analysts’ 1% expectations.
China’s March CPI rose at its slowest rate since September. 2021 due to the decline in food prices.
Tina Teng, an analyst at CMC Markets, said investors were hopeful that China’s low CPI indicates weakness in domestic demand. will push the Chinese government to accelerate the issuance of economic stimulus measures
At the same time, investors expect The Federal Reserve (Fed) is nearing an end to its interest rate-raising cycle. This view caused the dollar to weaken. and a positive factor for the oil market Due to the depreciation of the dollar, the crude oil contract, which is priced in dollars, It is cheaper and more attractive to investors holding other currencies.
The dollar index, which measures the greenback once morest a basket of six major currencies, was down 0.36 percent at 102.2017.
Investors are watching the US release the Consumer Price Index (CPI) for March today. Analysts expect the headline CPI, which includes food and energy, to rise 5.2% in March year on year. That slowed from 6.0% in February, but the core CPI (core CPI), which excludes food and energy, is expected to rebound 5.6% in March year on year. This is up from 5.5% in February.
Investors are also looking forward to the U.S. Energy Information Administration’s (EIA) crude stockpiles report today, as analysts expect U.S. crude stockpiles to drop by 1.3 million barrels last week.
By InfoQuest News Agency (12 Apr. ’23)
Tags: WTI oil, crude oil, oil price