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Monday, February 6, 2023

Oil loses almost 1% due to bad activity data in the US

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“A collapse greater than expected in the US producer pricesa drop in retail sales and the decline massive of the manufacturing production last month they have raised again concern about the economic cost of rate hikes (of interest),” said tamas vargaPVM Oil analyst.

These results seem to offset the boost to oil given by the reopening of China after abandoning his zero Covid policy, which had pushed him to earn more than 10% so far this year.

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The retail sales December in the United States recorded its biggest drop in a yearwhile the manufacturing production had his greatest collapse in almost two yearssince the increase in the cost of loans affected the demand for goods.

Even so, several officials at the Federal Reserve said that rates must rise above 5%despite the fact that inflation shows signs of having peaked and economic activity is slowing down.

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In addition, data from American Petroleum Institute showed that the inventories of crude oil in the United States increased by about 7.6 million barrels in the week ending January 13, according to market sources.

The dollar advances on the prospect of an aggressive rate hike, weighing on oil demand, as a stronger greenback makes the commodity more expensive for holders of other currencies.

Source: Ambito

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