TimesAsiaNews | International – It was reported that world oil prices rose by US$ 1 per barrel on Thursday (27/10/2022). This extended the previous day’s gains by nearly 3%. On optimism, record US crude exports and signs that recession fears are easing. This compensates for the sluggish demand in China.
Brent crude oil prices closed up to $1.27, or 1.3%, to $96.96 per barrel, while U.S. West Texas Intermediate (WTI) crude prices closed up $1.17, or 1.3. %, to US$ 89.08 per barrel.
Sources Data shows that US crude oil exports hit record highs, this could raise hopes with a stretch of the economy as demand soars. As for the US central bank speculation, the Fed will end its cycle of rate hikes to add support, after the European Central Bank (ECB) raised interest rates by 75 basis points.
“Crude oil prices rose after the US economy rebounded in Q3 2022,” said OANDA market analyst Edward Moya, referring to the company’s strong earnings report in the last quarter, although he added that oil gains were limited by views that the economy remains slowing.
The US economy grew 2.6% in the third quarter of 2022 (year on year / yoy) better than the Dow Jones forecast of 2.3% growth.
Meanwhile, China’s demand concerns limited the rise in oil prices. Global investors dumped Chinese assets earlier this week as the world’s largest energy-consuming economy implemented a zero-Covid-19 policy, a property crisis and falling market confidence.
“There are concerns that China’s economic policies may continue under President Xi Jinping’s control,” said Hiroyuki Kikukawa, research manager at Nissan Securities.
In early trading, the US dollar briefly touched a one-month low and could provide support for oil, although the US currency later strengthened. A weaker dollar makes oil cheaper for holders of other currencies and usually reflects investors’ greater appetite for risk assets.
Crude prices surged earlier this year after Russia invaded Ukraine, with Brent near an all-time high of $147 in March. Oil has recently slumped amid economic worries.
In addition, US and Western officials are finalizing plans to cap Russia’s oil prices.
Sumber: CNBC
