2023-04-28 20:42:09
Oil prices fell for the second week in a row, although the rise in stocks, driven by earnings reports on Wall Street, pushed prices higher.
WTI futures posted their highest gain in nearly four weeks on Friday, supported by risk sentiment benefiting all commodities in the markets.
Oil prices moved this week in much the same direction as other markets, with many traders avoiding betting on large investment positions while they wait for the next decision of the US central bank.
Crude prices swung violently in the month of April, rising to a 15-month high after the Organization of the Petroleum Exporting Countries (OPEC) and its allies announced production cuts. After that, prices gave up those gains amid technical pressures and a deteriorating outlook.
Recent economic figures reveal that inflation in the US continues to rise, fueling expectations that the Federal Reserve will continue to raise interest rates while increasing the chances of a recession stemming from weak demand.
Meanwhile, oil supplies from Russia remained strong despite G7 sanctions, and the recovery in China was slower than some expected.
The drop in refinery profit margins in Asia indicates that demand is already weak in the most oil-importing regions, but China’s recovery is beginning to consolidate. China’s largest oil refiner, Sinopec, said that the country’s economic recovery will raise demand growth rates for petroleum products by more than 10% this year.
Profits for the first quarter in the oil sector blew up expectations with the giants of the sector, Exxon Mobil and Chevron, achieving profits not seen since oil prices exceeded $145 a barrel in 2008, nearly double the current prices that revolve around $75 a barrel.
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