Oil prices in Asia fell on the afternoon of February 3 with benchmarks heading for a second consecutive week of losses, as the market awaited signs of demand recovery. fuel in China to offset impending declines in other major economies.
This session, the price of Brent oil futures delivery fell 34 US cents (equivalent to 0.4%) to $81.83 per barrel at 14:50. Price crude oil US light sweet (WTI) lost 37 US cents (equivalent to 0.5%) to 75.51 USD/barrel.
Both contracts are down more than 5% so far this week. According to observers, mixed signals on the recovery of fuel demand in China – the world’s top oil importer – are holding back the rise of the “black gold.”
ANZ bank analysts point to a spike in traffic in China’s 15 biggest cities after the Lunar New Year holiday, but also note that Chinese traders are “relatively sparse.”
[Nguy cơ kinh tế Mỹ suy thoái đẩy giá dầu châu Á tiếp tục đà giảm]
The prospect of economic recovery in China after the country eases COVID-19 containment measures has boosted oil markets so far this year, along with a weaker dollar making commodities cheaper. to holders of other currencies.
The dollar fell because the market no longer expected the US Federal Reserve (Fed) to raise interest rates strongly. But despite being supported by a weaker greenback, the momentum of oil has been constrained by the prospect of slowing growth in the US, the world’s biggest oil consumer, and the prospect of a recession in major economies including the UK, Europe, Japan and Canada.
Priyanka Sachdeva, market analyst at financial services firm Phillip Nova, said the upcoming rate hikes in 2023 are likely to hit the US and European economies, raising concerns. about the economic downturn. These factors are very likely to reduce the global demand for crude oil.
Investors are also eyeing the European Union (EU) bans that will take effect on February 5 on Russian refined oil products. EU member states will seek an agreement by February 3 to impose a price ceiling on Russian oil products.
Thuy (VNA/Vietnam+)