Both contracts fell dragged down by the dollar risewhich was boosted on Wednesday after the Federal Reserve’s decision to raise interest rates to 4.25%-4.50%, its highest level since 2007. A stronger dollar may weaken demand oil because it makes the raw material more expensive for those who have other currencies.
The Chairman of the Federal Reserve, Jerome Powell, said on Wednesday that the US central bank will raise interest rates further next yeareven when the economy is heading towards a possible recession.
Data showed that the china economythe second largest in the world, lost more momentum in november Due to the production slowdown manufacturing and a deepening of declines in retail sales, which missed forecasts and registered its worst readings in six months, while COVID-19 cases increased.
T.C. Energy Corp. from Canada said he is resuming operations in a section of its Keystone pipeline, a week after a leak of more than 14,000 barrels Oil spills in rural Kansas caused the entire pipeline to shut down, also weighing on crude prices.
The The fall in prices was halted by the forecasts of the International Energy Agencywhich expects Chinese oil demand to recover next year after a contraction this year of 400,000 barrels per day.
While, US crude oil reserves increased by more than 10 million barrels last weekthe most since March 2021, according to the Energy Information Administration.
Goldman Sachs on Wednesday reduced its oil price forecasts for 2023citing an expected market surplus early next year as supply from Russia remains robust and demand from China soars.
Source: Ambito
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