Oil futures rise early Thursday, finding support on continued optimism over China's reopening while awaiting a U.S. inflation reading.
Oil futures rose early Thursday, finding continued support on optimism over prospects for increased crude demand from China’s reopening of its economy after lifting COVID restrictions, while awaiting U.S. inflation figures that will be watched for clues to how aggressive the Federal Reserve will be as it continues to raise interest rates.
Price actionMarket drivers China’s strict COVID restrictions have been seen keeping a lid on crude demand from one of the world’s largest energy importers since 2020. The... Oil futures rose early Thursday, finding continued support on optimism over prospects for increased crude demand from China’s reopening of its economy after lifting COVID restrictions, while awaiting U.S.
Price action Market drivers China’s strict COVID restrictions have been seen keeping a lid on crude demand from one of the world’s largest energy importers since 2020. The lifting of those curbs has sparked expectations for a strong pickup in crude demand. “A number of signs, including an increase in crude oil import quotas, suggest a recovery in Chinese oil demand this year,” said Warren Patterson and Ewa Manthey, commodities strategists at ING, in a note. “Although the big uncertainty remains just how big a recovery we will actually see. In our balance sheet, we assume that China will make up 50% of the 1.7 million barrels a day of global demand growth expected this year.
However, the December U.S. consumer-price index, due at 8:30 a.m. Eastern, will be closely watched to assess the outlook for future Fed rate hikes. A further slowdown in inflation could buttress hopes the Fed will be less aggressive than policy makers have indicated and that a sharp slowdown in economic activity can be avoided.“A softer landing for the U.S.
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