both contracts they went up on monday and tuesdayrecovering from a strong sell-off in the first week of 2023.
The US crude inventories increased by 14.9 million barrels in the week ending Jan. 6, according to market sources citing data from the American Petroleum Institute (API). At the same time, distillate stocks grew by 1.1 million barrels.
Analysts consulted by Reuters they expected a decline of crude oil reserves. Traders will be watching inventory data from the US Energy Information Administration.
the oil market has been dragged downwards for fear that the increase in interest rates to curb inflation trigger a recession and reduce demand for fuel. US inflation data will be released on Thursday.
This Tuesday, the president of the Fed, Jerome Powell, did not anticipate any change in the entity’s monetary policy. “We should ‘stick to our business’ and not wander in search of perceived social benefits that are not closely tied to our goals and legal authorities,” Powell said in remarks at a central bank-sponsored forum on central bank independence. Swedish.
“Taking on new targets, however valuable, without a clear legal mandate would undermine the argument for our independence.”
According to analysts, if inflation is below expectations, the dollar will fall. A weaker dollar may boost demand for oil, as cheapen the raw material for buyers holding other currencies.
Prices have been supported by hopes of fuel demand growth in chinathe second largest oil consumer in the world after the United States, after Beijing eased its COVID-19 restrictions and increased crude import quotas by 20%.
Source: Ambito
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