“Crude prices are falling as energy traders anticipate a possible weakening in oil demand, as a prominent inflation report could force the Fed to tighten monetary policy much more aggressively,” said Edward Moya, an analyst at OANDA, referring to US consumer price data due to be released on February 14.
“This week could be a turning point in determining the severity of the recession that Wall Street envisions,” he added.
The Fed has been raising rates to curb inflation, which has raised concerns that this measure will slow down economic activity and demand for oil.
Meanwhile, the resumption of Azerbaijani oil exports from Turkey’s Ceyhan terminal on Sunday somewhat eased supply concerns.
The terminal had been damaged by the devastating earthquakes that struck Turkey and Syria last week. It is the storage and loading point for pipelines carrying oil from Azerbaijan and Iraq.
Both Brent and WTI rose more than 8% last week, driven by optimism about a recovery in Chinese demand after the end of the COVID restrictions in December.
Source: Ambito
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