Oil prices rose in the early session on Monday on hopes of a recovery in Chinese demand and fears that limited investment will affect oil supplies as major producers see their output cut. Brent crude was up about 70 cents at $83.70 a barrel by 0720 GMT, and U.S. West Texas Intermediate (WTI) crude was at $76.89 a barrel, up about 55 cents. Two global oil benchmarks traded about $2 lower in Friday’s session, ending the week down % after reports of higher-than-expected US oil inventories. Brent and WTI prices are slightly higher this morning after the Fed’s recent comments on stronger than expected CPI and PPI data sold, according to Baden Moore, head of commodities research at National Australia Bank. The United States announced last week that it would sell 26 million barrels of oil from its Strategic Petroleum Reserve (SPR), weighing on the oil market, but Moore said global supply appears to be steadily declining, as announced by Russia and OPEC. production cuts. He was referring to the agreement between the Organization of the Petroleum Exporting Countries (OPEC) and its allies (also known as OPEC), when they decided last October to cut oil production by 2 million barrels per day until the end of 2023. . Russia also announced that starting in March they will cut their production by about 500,000 barrels per day due to Western sanctions against oil and petroleum products. “In that context, we continue to see China’s reopening and China’s recovery and global demand for aircraft to drive up prices,” Moore added. China is one of the world’s largest oil importers. Forex trading conditions may remain somewhat quiet on Monday as the US market remains closed for President’s Day. However, the US dollar found support on Monday morning after last week’s strong US economic data, which could keep the Federal Reserve in its current tightening cycle longer than initially thought. US$ , was higher against other major currencies in early Asia, with the British pound down about 0.06% against the dollar at 1.2035. the dollar held at a two-month high of 13 .11 against the Japanese yen. Several recent US economic data showed that the labor market remains strong, inflation remains high, retail sales remain strong and producer prices remain high, adding to expectations that the Federal Reserve has more work to do to curb inflation and that interest rates may fall. higher than previously expected. “The dollar could follow higher next week on recent economic data that supports the higher interest rate story,” said Carol Kong, currency strategist at Commonwealth Bank of Australia. In addition, recent comments from members of the Federal Reserve supported the dollar as they pointed to higher interest rates as inflation began to slow further. Similarly, two members of the European Central Bank (ECB) announced last Friday that it may be necessary to further increase interest rates in the euro area. However, their comments did not support the euro, which was about 0.08% lower against the dollar at 1.06855. According to Kong, embarrassing comments from the ECB are unlikely to support the euro due to the strength of the dollar. The $ , index, up 2% on the month, is trading slightly below the 103.93 level. NZD was down about 0.07% against the US dollar near 0.6238 as attention turned to the Reserve Bank of New Zealand’s (RBNZ) interest rate decision on Wednesday. The RBNZ is seen slowing its rate tightening cycle with a 50 bps rate hike.
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