The contracts of the West Texas Intermediate in the United States for the same month (WTI) subtracted 58 cents, or 0.8%, at $75.77 a barrel.
The Fed will publish this Wednesday afternoon the minutes from their last meeting, which will give traders an idea of how the authorities plan to raise rates after the latest reports showed stronger-than-expected labor and consumer price data in the United States.
Higher rates tend to boost the dollar, making oil -denominated in the greenback- more expensive for holders of other currencies and reducing demand. The dollar index has already accumulated two wheels upwards and so far this month it has recorded a rise of 2%.
Yet others US economic reportss, the world’s largest consumer of oil, showed some worrying signs. The Existing home sales fell in January to their lowest level since October 2010.
On the eve, a preliminary poll of Reuters analysts also showed a increase in crude oil inventories in the United Statescompounding concerns about demand.
The expectations of a tighter global offer and rising Chinese demand also cushioned the general weakness of prices. Analysts expect the Chinese oil imports reach a record in 2023 to meet increased demand for transportation fuel and as new refineries come online.
Morgan Stanley raised its estimate for oil demand growth this year to 1.9 million barrels per day from the previous 1.4 million, 69% more, driven mainly by the Chinese reopening and the recovery of aviation, but it lowered its Brent price forecast for the July- December. The russian offer would put a cap on the recovery.
Source: Ambito
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