Scattered Clouds
clouds

18 April 2024

Amman

Thursday

71.6 F

22°

Home / Business

Oil prices soften; banking crisis and Chinese demand in focus

28-03-2023 12:23 PM


Ammon News - Crude prices retreated on Tuesday after rallying the previous session, with markets focused on developments in the banking crisis and indications of strengthening demand in China.

Prices eased after rising at the fastest pace in more than four months on Monday. West Texas Intermediate U.S. crude was down 1 cent, or 0.01%, to $72.80 a barrel. Brent crude futures fell 19 cents to $77.93 a barrel by 0651 GMT.

"Though risks remain in the banking system amid the recent event, dip-buys in crude oil could be the prevailing trend in the near term," said Tina Teng, an analyst at CMC Markets.

Prices rose in the previous session after Turkey stopped pumping crude from Kurdistan via a pipeline following an arbitration decision that confirmed Baghdad's consent was needed to ship the oil.

Monday's announcement that First Citizens BancShares Inc (FCNCA.O) will acquire deposits and loans of failed Silicon Valley Bank (SIVB.O) spurred optimism about the condition of the banking sector that has roiled financial markets.

Oil prices were also likely to continue drawing support from indications of recovering Chinese demand.

China's crude oil imports are expected to rise 6.2% in 2023 to 540 million tonnes, according to an annual forecast by a research unit of China National Petroleum Corp on Monday.

"China's manufacturing and services PMIs will be a major economic driver to oil prices as positive data is most likely to further improve the demand outlook," Teng said.

U.S. crude oil stockpiles were seen rising about 200,000 barrels last week, a preliminary Reuters poll showed on Monday.

The American Petroleum Institute (API), an industry group, will publish its inventory data at 4:30 p.m. EDT on Tuesday and the U.S. Energy Information Administration at 10:30 a.m. on Wednesday.

Reuters




No comments

Notice
All comments are reviewed and posted only if approved.
Ammon News reserves the right to delete any comment at any time, and for any reason, and will not publish any comment containing offense or deviating from the subject at hand, or to include the names of any personalities or to stir up sectarian, sectarian or racial strife, hoping to adhere to a high level of the comments as they express The extent of the progress and culture of Ammon News' visitors, noting that the comments are expressed only by the owners.
name : *
email
show email
comment : *
Verification code : Refresh
write code :