The global oil market noticed a dip in crude oil prices amid the hope of China’s reopening from the economic slowdown. The Asian trade market noticed a 0.4% decline in Brent crude oil, around 36 cents. On the other hand, West Texas Intermediate crude was $76.65 per barrel, which fell 21 cents.
As China lifts the COVID restrictions steadily, the oil demand is expected to increase in 2023. “The economy of the U.S. is expected to grow amid China’sChina’s huge crude demand.” Edward Moya (OANDA, Analyst) said in a statement.
In the coming week, the International Energy Agency and the Organisation of the Petroleum Exporting Countries will release their monthly reports. Business analysts and investors eagerly wait for this report to forecast the future global oil demands and supply requirements.
On the other side of the note, analysts also claim that the demand for China’s export of refined oil products is expected to decline up to 40 per cent in January. The figure might go up, which affects not only the global market but also the U.S. stock market.
JP Morgan also forecasted the oil price at $90 per barrel amid China’s increasing demand. After the lunar new year, there is also high transportation usage during the holiday. Traffic levels are also surging on China’s streets, which gives the hope of increasing demand for crude and oil products.
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Top investors have now piled up to discuss the oil trade future and possibilities of fulfilling the exports in the Asian market. It is too early to conclude how much the oil price can dip or touch the highest in 2023.
It is also essential to notice the declining rate of the dollar in the global market. Crude oil might be cheaper for people who use other currencies. The eyes of analysts and investors will be on the upcoming report of the International Energy Agency and the Organisation of the Petroleum Exporting Countries to strategise future policies.
