"Such measures could reset expectations, upgrading demand forecasts and boosting oil prices."Įxpectations central banks are near the end of their interest rate hiking cycles and that the economy may prove more resilient than feared have accompanied crude's rebound. The announcement on Wednesday that Beijing plans to deploy economic stimulus measures brought "some hope to oil traders," he said in market commentary. "China is struggling to recover the growth levels we had been used to in the pre-pandemic years and, being the world's largest crude importer, that is denting future oil demand prospects." Weakness in crude prices in 2023 has been attributed to worries that interest-rate rises by global central banks will spark a sharp economic downturn, while a disappointing rebound by China after the lifting of strict COVID-19 curbs has also been a factor.Īny upside on oil is "capped by the gloomy outlook for the Chinese economy," said Ricardo Evangelista, senior analyst at ActivTrades. Oil futures have bounced in July, with WTI up over 9% and Brent up more than 8%, trimming year-to-date losses, FactSet data show. and global crude benchmarks scoring a fourth straight weekly rise on expectations the second half of 2023 will see a tightening of supplies in the crude market. Natural-gas futures mark a weekly rise of nearly 7%
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