Traders in the energy sector remain skeptical about how quickly China’s crude demand will recover this quarter, according to an analyst.
Oil prices fall on Tuesday, January 24, amid concerns about the slowdown in the world economy and the expected accumulation of inventories in USA. By 1746 GMT, Brent crude was down $1.36, or 1.5%, at $86.83 a barrel. While the West Texas Intermediate in the United States (WTI) – which is used as a reference for Peru – lost US$1.11, or 1.4%, to US$80.51.
US business activity contracted for the seventh consecutive month in January, although the slowdown moderated in both the manufacturing and services sectors for the first time since September, while business confidence strengthened at the start of the new year.
“The (US) economy could still turn around and some energy players remain skeptical about how quickly China’s crude demand will rebound this quarter,” Edward Moya, an analyst at Oanda, said in a note. .
Traders will be watching for more business data this week as corporate earnings season gathers momentum and offers clues about the health of economies around the world.
Goldman Sachs (NYSE:GS) analysts expect commodities such as crude oil, refined petroleum products, LNG and soybeans to rise on the back of a rebound in Chinese demand.
The dollar, for its part, hovered around nine-month lows against the euro and gave up its recent gains against the yen, while traders continued to gauge the risks of recession in the United States and the direction of the Federal Reserve (FED) policy.
With information from Reuters.
Source: Larepublica
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