The Petroleum trading lower at the start of the week, with prior month’s WTI futures currently down 50 cents on the session and hitting two-day lows at $ 78.50, as the gradual pullback from the highs of $ 78.50 continues. In the past week.
According to a report by FXStreet, the macro focus will be on this week’s US consumer price inflation data to be released on Wednesday, which could affect market expectations about whether the Fed will raise interest rates in March. or not.
The Fed’s tightening issue has been the main driver of equity, bond and currency markets in recent days, but crude has also focused on supply dynamics.
It should be recalled that oil prices were supported last week by news of a significant short-term decline in production in Libya and because protests in Kazakhstan disrupted production there. While there are no signs of recovery in production in the first, the president of the second said that the situation is now back under control, alleviating fears that its production of 1.16 million barrels per day.
Market commentators have also pointed out that the China lockdowns are likely to be a major issue in crude oil markets going forward. Several Chinese cities are reporting cases of local transmission of the Omicron variant, the spread of which in the Asian giant is considered a key proof of the country’s zero COVID-19 approach.
After discovering the Omicron infections, the northern city of Tianjin has tightened exit controls, while the centrally located Henan Province has also reported cases. OCBC Bank analysts said authorities are likely to stick with their strategy ahead of the Beijing Winter Olympics in February and the economy is likely to experience “more short-term disruptions due to more frequent shutdowns.”
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