Business News Asia
Crude oil futures closed slightly higher on Wednesday, January 25th, as fears of a recession overshadowed positive news of lower than expected US crude inventories.
- WTI crude futures rose 2 cents, or 0.02%, to close at $80.15 a barrel.
- Brent crude futures fell 1 cent, or 0.01%, to $86.12 a barrel.
In the early trading session, WTI crude futures rose 1% to $81 after the US Energy Information Administration (EIA) reported that US crude inventories rose by just 500,000 barrels to 448.5 million barrels last week, 1 million barrels less than analysts had predicted.
However, the crude oil contract later weakened as investors continued to worry about signs of a recession. According to S&P Global, the preliminary Purchasing Managers’ Index (PMI) for US manufacturing and services came in at 46.6 in January, up from December’s 45.0, but still below 50, indicating that the US business sector is in contraction. This marks the 7th consecutive month of contraction.
Investors are now looking ahead to the meeting of the Joint Ministerial Review Committee (JMMC) of the Petroleum Exporting Countries and Allies (OPEC+) on February 1st. According to sources, the JMMC will agree to maintain the current policy of cutting production by 2 million barrels per day until the end of 2023.
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Thursday, January 26, 2023