2023-05-02 07:09:00
The drop in US crude oil inventories is supporting the market somewhat
Oil prices fell in Asian trading today, Tuesday, to continue the losses incurred in the previous session, at a time when weak economic data coming from China and expectations of raising US interest rates cast a shadow on the market.
Brent crude fell 24 cents, or 0.3%, to $79.07 a barrel by 06:15 GMT, and US West Texas Intermediate crude fell 25 cents, or 0.3%, to $75.41 a barrel, and the two crudes fell more than a dollar in their last session.
“The negative pressure on oil means that the economic recovery in China is not really promising, which hinders the outlook for fuel demand,” said Tina Ting, an analyst at CMC Markets.
Official data on Sunday showed that China’s manufacturing activity fell unexpectedly in April, marking the first contraction in the manufacturing PMI since last December.
China’s industrial and economic recovery from the coronavirus pandemic was expected to boost demand this year.
Yesterday’s poll showed expectations of a decrease in US crude oil inventories for the third week in a row, which supports the market somewhat.
The Federal Reserve (the US central bank), which meets on Tuesday and Wednesday, is expected to raise interest rates by another 25 basis points. energy.
Concerns regarding the banking sector have also affected oil in the past few weeks.
In what was the third collapse of a major US corporation in two months, US regulators seized First Republic Bank this week before it agreed to sell most of its shares to JPMorgan.
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