Oil Gains For The Second Day On Supply Concerns Chinese Demand

Oil prices continued to rise for a second day in the early session on Tuesday, supported by optimism about a possible recovery in Chinese energy demand and concerns about supplies after an export terminal in Turkey was closed due to an earthquake. Brent crude futures at , were up about 82 cents to trade near $81.81 a barrel at 0300 GMT, while West Texas Intermediate futures also added 82 cents to settle at $7 .93 a barrel. “Crude prices are rising on expectations that China’s recovery will continue and provide disruptions after the earthquake that devastated Turkey,” said Edward Moya, an analyst at OANDA. About half of this year’s global oil demand could come from China, according to comments from the head of the International Energy Agency (IEA) on Sunday, who also said demand for jet fuel is growing. Saudi Arabia, one of the world’s largest exporters, raised oil prices for its Asian customers, hoping for a recovery in oil demand in China. , Turkey’s 1 million barrels per day oil export terminal in Ceyhan was suspended due to a major earthquake in the region. The BTC terminal, which exports Azeri crude oil to the world market, will remain in the 6-8. closed until February. In addition, the attention of the oil market could be directed to the speech of the president of the central bank, Powell, because any discussion about interest rates supporting the dollar could make oil more expensive for buyers of other currencies. In the foreign exchange market, the Australian dollar strengthened after the Reserve Bank of Australia decided to raise interest rates by 25 basis points, as widely expected, also signaling further rate hikes as inflation remains persistently high. AUD was up about 0.7% to trade near 0.6929 against the US dollar, near 0.700. , The US dollar was slightly lower against other major currencies in Tuesday’s early session, with the dollar index down about 0.1%. , US stocks traded in major US futures early Tuesday, as expectations were met for a speech by Federal Reserve Chairman Powell. , SandP 500 futures were up about 0.12%, while Dow Jones Industrial Average futures were up a slight 0.02%. Nasdaq 100 futures rose about 0.18%. , Shares of Pinterest fell about 2% in the session after the disappointing report. In Monday’s regular session, the Dow Jones industrial average fell about 0.1%, extending its losing streak to three days, while the S&P 500 and Nasdaq Composite fell 0.61% and 1%, respectively. , Nine of the 11 major SandP sectors ended Monday’s session lower, with communications services the biggest loser. “I think the market is repricing and that’s why you’re going to see the market pull back a little bit, certainly you’re going to come out with the jobs report and we’re going to see a little bit more today,” Sinead Colton Grant, global head of investment solutions at BNY Mellon Wealth Management.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s