Crude oil futures experienced a resurgence on Thursday, November 9, as investors seized the opportunity to buy in after a recent sharp drop in oil prices. This recovery was seen in both WTI and BRENT crude oil futures, providing a sense of relief to the market.
WTI crude oil futures exhibited a rise of 41 cents, equivalent to a 0.54% increase, ultimately closing at $75.74 per barrel. Simultaneously, BRENT crude futures saw a gain of 47 cents, translating to a 0.59% increase, with a closing price of $80.01 per barrel.
The sudden reversal in fortunes for WTI and BRENT oil prices came after two consecutive days of heavy losses, attributed to concerns surrounding a slowdown in oil demand. Additionally, investors turned their attention to the geopolitical front, with the belief that the ongoing conflict between Israel and Hamas would not substantially impact oil supply in the Middle East.
Nevertheless, as the trading day drew to a close, the oil market faced renewed pressure. This was primarily due to a statement by Federal Reserve Chairman Jerome Powell during a seminar organized by the International Monetary Fund (IMF. Powell hinted at an impending increase in interest rates, raising concerns among investors that such a move could potentially dampen oil demand.
Adding to these apprehensions was China, the world’s largest consumer of oil, reporting deflation concerns. The Consumer Price Index (CPI), which gauges inflation based on consumer spending, recorded a year-on-year decrease of 0.2% in October, surpassing analysts’ expectations for a 0.1% drop. Meanwhile, the Producer Price Index (PPI), measuring the cost of goods at the factory gate, saw its second consecutive monthly decline in October, falling by 2.6%.
These figures underscore the challenges facing the Chinese economy as it attempts to recover from the impact of the COVID-19 outbreak. Despite various measures announced by the Chinese government to stimulate economic growth, China continues to grapple with repercussions in its real estate sector, including the looming risk of debt problems. Furthermore, China’s monetary policy remains at odds with that of Western countries.
In conclusion, the oil market displayed signs of resilience as investors regrouped following a recent downturn in oil prices. However, uncertainties stemming from factors such as interest rate hikes and economic conditions in China continue to loom over the market, leaving participants vigilant as they navigate this dynamic landscape.
The Spot Market is Open
Friday, November 10, 2023
| Energy Updated at | USD Price | Change | %Change |
| Crude Oil 07.00 | 75.58 | +0.25 | +0.33% |