Business News Asia
Crude oil futures closed lower on Tuesday, January 24th, as investors expressed concerns about a potential global recession and reports indicating that US crude inventories rose more than expected last week.
- WTI crude futures were down by $1.49, or 1.8%, at $80.13 a barrel.
- Brent crude futures fell by $2.06, or 2.3%, to settle at $86.13 a barrel.
The fall in crude futures came after the American Petroleum Institute (API) reported that crude inventories rose by 3.4 million barrels for the week ended January 24th.
Markets were also pressured by concerns over signs of a global recession. The Purchasing Managers’ Index (PMI) from S&P Global revealed that the preliminary US manufacturing and services sectors rose to 46.6 in January from 45.0 in December. However, the PMI remained below 50, indicating a contraction in US business and is the 7th consecutive month of contraction.
Investors are also awaiting the official report of crude inventories from the US Energy Information Administration (EIA) on Wednesday. At the same time, analysts predict that the economies of the Gulf Cooperation Council (GCC) members in 2023 will expand by half of 2022 as oil revenues suffer from a global slowdown in demand and economic growth. The GCC consists of six countries: Saudi Arabia, Kuwait, Oman, United Arab Emirates, Qatar and Bahrain.
Investors’ focus is now on the Conference of the Petroleum Exporting Countries and Allies (OPEC+) on February 1st. While analysts expect the meeting to maintain production at current levels.
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Wednesday, January 25, 2023