Oil prices have stabilized today, with the global benchmark Brent rising for the first time in three weeks due to positive economic data from China and the United States, which has increased expectations for demand growth. Writes UNN with reference to Reuters.
Brent crude oil is expected to rise by 0.6% since last Friday, while WTI is set to rise by 1.3%. In China, industrial production in April rose by 6.7% year-on-year, accelerating from 4.5% in March, indicating a potential increase in demand in the future, and the country also announced new measures to stabilize its crisis real estate sector.
The lack of apparent enthusiasm is likely the result of low demand for products, which reduces processing margins
According to him, although the Chinese data and another attack on Russian oil infrastructure are boosting prices, oil has yet to make a convincing recovery from its recent decline.
The decline in crude oil and petroleum product inventories in global trading hubs contributed to positive demand sentiment, reversing the earlier upward trend in inventories that had previously had a significant impact on crude oil prices.
Kelvin Wong, Senior Market Analyst at OANDA, noted several positive factors, including a two-week decline in US crude oil inventories and expectations of new economic stimulus measures from China.
Data on US consumer prices, which rose less than expected in April, also contributed to optimism about global oil demand, raising hopes for lower US interest rates. This could make oil cheaper for foreign investors, weakening the dollar. Meanwhile, investors are waiting for the next OPEC+ meeting on June 1 to clarify the future supply strategy.
With the price of Brent crude hovering below $90, a level quietly targeted by Saudi Arabia and others, the upcoming OPEC+ meeting is likely to result in a continuation of current production cuts
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