Oil prices closed higher on Monday, March 6, driven by expectations of tight oil supply in the world market and a recovery in oil demand in China. According to reports, crude oil futures initially fell following China’s announcement that its target for economic growth this year would be around 5%, lower than market expectations.
However, later in the day, Chevron CEO Mike Worth said at the CERAWeek energy conference that oil markets and logistics were tight and vulnerable to supply disruptions.
Furthermore, Gunwar CEO Thorbjohn Thornquist expected crude prices to rise in the second quarter due to Chinese demand returning to the market.
As a result, WTI crude oil contracts for April delivery rose by 1%, or 78 cents, to $80.46 per barrel. Meanwhile, Brent crude futures increased by 0.4%, or 35 cents, to $86.18 per barrel.
The market was also boosted by news that Saudi Arabia had raised the price of “Arab Light” crude sold to Asian customers for the second straight month in April, along with the dollar’s weakness, which made dollar-priced crude futures cheaper for investors in other currencies.
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Tuesday, March 7, 2023