While the barrel of West Texas Intermediate (WTI) for February lost 5.3% at $72.84 in New York.
The Chinese government increased export quotas for petroleum products refined in the first batch by 2023, signaling expectations of weak domestic demand.
The main oil exporterSaudi Arabia, could further cut prices of its flagship Arab Light crude for Asia in February, after have set them at their lowest level in 10 months for this month, as concerns over oversupply continue to roil the market.
The director of the International Monetary Fund, Kristalina Georgievawarned that much of the world economy will have a difficult year in 2023since the main engines of global growth -United States, Europe and China- will experience a weakening of activity.
The dollar weakens this wednesday, after recording large gains in the previous session. A weaker dollar tends to boost demand for oil, as greenback-priced commodities become cheaper for holders of other currencies.
On Monday, a preliminary Reuters poll showed that crude oil reserves in the United States probably increased by 2.2 million barrelswhile distillate inventories are expected to decline.
The American Petroleum Institute will publish data on crude oil inventories in the United States on Wednesday. The Energy Information Administration (EIA)the statistical arm of the US Department of Energy, will publish its own figures on Thursday.
UBS bank expects Brent prices to rise to $110 a barrel and WTI to $107 in 2023.
The OPEC announced this Wednesday that in December its production was increased by the recovery of supplies from Nigeria. In December, the organization of oil countries was 29 million barrels per day, 120,000 more than in November.
Nigeria had been battling for months against oil theft and insecurity in its oil-producing region.
Source: Ambito
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