Brent and WTI contracts oscillate between positive and negative terrain on Friday, but accumulate a weekly loss of more than 4% after two weeks of gains on concerns about the global economy.
China, the world’s largest oil importer, has been battling COVID outbreaks after a week of festivities. The country’s number of infections is small by world standards, but its strict policy is weighing down economic activity and, therefore, the demand for crude.
The International Energy Agency (IEA) trimmed on thursday his oil demand forecast for this year and the next, warning of a possible global recession.
“Significant downward corrections to (oil) demand forecasts, especially for next year, have depressed prices,” said analysts at Commerzbank in dialogue with Reuters.
“However, we see little downside potential. The market will be broadly balanced despite weaker demand in the first half of the year due to OPEC+ production cuts,” they added.
The European Central Bank For his part, he added pressure to this expectation since he announced that for the coming year he foresees a recession of around 1% for the eurozone, driven by the persistence of inflation, the monetary policy to curb it and the energy shortage.
The data is added US inflation that was known on Thursday that, in interannual terms, it rises to 8.2%, below the 8.3% of August but one tenth more than the expected 8.1%, which leaves in the air if we have definitively said goodbye to the peak . News that will be pointed out by the US Federal Reserve (Fed) ahead of its next interest rate meeting. The CPI in monthly terms rises 0.4%, higher than the previous one and than expected.
Source: Ambito
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