US crude oil futures West Texas Intermediate (WTI) were up 65 cents, or 0.8%, at $78.51 a barrel. In the first month of the year, he loses $1.8.
Investors expect the US Federal Reserve to raise interest rates by 25 basis points on Wednesday, and that the following day the Bank of England and the European Central Bank do so at half a point. Higher rates could slow the global economy and weaken demand for oil.
In addition, it is expected that OPEC members recommend keeping the current production policy unchanged of the group when it meets on February 1.
In parallel, the production of the organization of oil countries fell in JanuaryReuters reported, as Iraq’s exports fell and Nigeria’s output recovery stalled, while Gulf countries maintained strong adherence to a supply cut pact to support the market.
The Organization of the Petroleum Exporting Countries pumped 28.87 million barrels per day (bpd) this month, according to the survey, a volume 50,000 bpd lower than December.
In September, OPEC production was the highest since 2020.
There are signs of a potentially healthy demand from Chinawith the country’s official Purchasing Managers’ Index (PMI), which measures manufacturing activity, rising in January from December, according to the National Bureau of Statistics (NBS).
The International Monetary Fund (IMF) also slightly raised its global growth outlook for 2023 due to “surprisingly resilient” demand in the United States and Europe, an easing of energy costs and the reopening of the Chinese economy after Beijing abandoned its strict COVID-19 restrictions.
Source: Ambito
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