crude oil futures West Texas Intermediate US oil prices (WTI) for April are up $1.24, or 1.6%, at $76.89 a barrel. Thus, it is on track to close the month with a rise of 75 cents.
Expectations of a recovery in Chinese demand underpinned the gains, while the market expect key data over the next two days. Economists polled by Reuters expect factory activity in the world’s second largest economy to grow in February.
“Chinese economic recovery will boost its demand for raw materialsand oil will benefit the most,” said analysts at JPMorgan in a note to your clients.
JPMorgan oil analysts maintained their Brent crude oil futures median price forecast for 2023 at $90 per barrel.
However, the threat of further hikes in US interest rates – following higher-than-expected new orders for US manufactured capital goods in January – limited gains, while Federal Reserve Governor Philip Jefferson said services inflation remained “stubbornly high “.
The market will be watching the latest data on oil reserves in the United States, which will be published on Tuesday by the American Petroleum Institute, and the Energy Information Administration, which will do the same on Wednesday, for other indicators of demand.
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