The main crude oil producers decided last week to cut production and are awaiting decisions from the Fed.
The prices of Petroleum rose slightly this Wednesday after four days of declines, as signs of supply shortages following production cuts by major producers offset concerns about demand in China and USA, the two largest consumers of crude oil in the world.
Crude oil futures Brent rose 53 cents, or 0.65%, to $82.57 a barrel in the morning, while U.S. crude futures West Texas Intermediate They rose 64 cents, or 0.82%, to $78.79 a barrel, after falling the last two days.
The economic growth objective of China for 2024 around 5%, set this Tuesday, lacks major stimulus plans to strengthen its economy, increasing concerns about the slow growth in oil demand.
Waiting for the United States
Eyes are now on the semiannual testimony on monetary policy that the president of the United States Federal Reserve (Fed), Jerome Powellwill offer before the Congress on Wednesday and Thursday, and in US employment data this Friday.
The market expects the nonfarm payrolls data from USA Friday show an increase of 200,000 jobs in February, after an increase of 353,000 in January, according to a Reuters poll of economists.
Powell’s comments and jobs data could provide clearer direction on interest rates in USA, and signs of a Fed cut would be seen as positive for the economy and demand for Petroleum.
Meanwhile, the prices of Petroleum were boosted by this Sunday’s announcement that the Organization of Petroleum Exporting Countries and its allies (OPEC+) where they declared the extension of production cuts of 2.2 million barrels per day until the end of the second quarter.
The extension created some supply shortages, especially in Asian markets, along with the interruption of oil tanker movements as a result of attacks in the Red Sea by the Houthi militia in Yemen, which is jamming the barrels in transit.
The first of two US inventory reports this week, from the group American Petroleum Instituteshowed that crude oil stocks in USA They increased by 423,000 barrels in the week ended March 1, market sources said, much less than the increase of 2.1 million barrels.
Source: Ambito
