Crude oil futures closed higher on Tuesday (Feb. 28), driven by expectations that oil demand in China will recover. Investors are also keeping a close eye on the US crude stock report to be released today.
WTI crude futures rose $1.37, or 1.81%, to close at $77.05 a barrel, while BRENT crude futures rose $1.44, or 1.75%, to close at $83.89/barrel.
WTI crude futures rallied nearly 2% amid hopes of an economic recovery in China, which is the world’s largest oil importer. The International Energy Agency (IEA) predicts that oil demand in China will increase by an average of 900,000 barrels per day this year.
Analysts expect oil prices to rise above $90/barrel in the second half of 2023 as demand for oil in China recovers and oil production in Russia declines. Recently, Russia announced it would cut oil exports from western ports by 25 percent in March.
However, throughout February, WTI crude futures fell 2.5%, and Brent crude futures fell 0.7% as investors worried about the impact of the Federal Reserve’s move to raise interest rates.
Investors are keeping a watchful eye on the release of the Purchasing Managers’ Index (PMI) for China’s manufacturing and services sectors this week to find signs indicating the growth of the Chinese economy.
Moreover, analysts expect US crude inventories to rise by 400,000 barrels for the week ended Feb. 24, which will be revealed through the US Energy Information Administration’s (EIA) crude inventory release today.
The Spot Market is Open
Wednesday, March 1, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 10.30 | 77.45 | +0.40 | +0.52% |