Chat with us, powered by LiveChat

Elija el país y el idioma:

Close Icon

Oil prices hit 7-week high on increased oil demand outlook

Home >  Daily Market Digest >  Oil prices hit 7-week high on increased oil demand outlook

detail_image_market
author_img

Written by:
Myrsini Giannouli

24 January 2023
Share the article

Oil prices remained strong on Monday, hitting a 7-week high, with WTI price testing the $82.3 per barrel resistance, but failing to overcome this end dropping to $81.4 by the end of the day. If the WTI price declines, it may encounter support near $70.2 per barrel, while resistance may be found near $82.3 per barrel.

Increased optimism about China’s economic reopening is boosting oil prices. China is the world’s largest energy importer and prolonged lockdowns have dampened oil demand. China released GDP data last week for the final quarter of 2022, which exceeded expectations, providing support for oil prices. 

China’s economy has suffered from prolonged lockdowns and the country’s debt has ballooned over the past few years. The Chinese government eased some of its strident Covid regulations recently, abandoning its zero-Covid policy. China has also re-opened its borders after almost three years, fuelling hopes of economic recovery. Recent data shows a marked increase in air travel and road traffic in China after the restrictions were eased, indicating increased economic activity and oil demand.

The global economic outlook is improving with the US economy leading the way, increasing the oil demand outlook. US inflation seems to be cooling, which may give the Federal Reserve some leeway toward scaling back its interest rate increases. US PPI data last week fell below expectations, reducing Fed rate hike expectations and driving oil prices up. PPI declined by 0.5% in December, versus estimates of a 0.1% drop. Headline inflation also dropped to 6.5% year-on-year in December from 7.1% in November. 

Aggressive rate hikes stifle economic activity fuelling recession fears. As inflation starts to cool though, central banks are beginning to lower the pace of rate hikes, raising oil demand expectations.

OPEC released its monthly report last week, raising optimism about the oil demand outlook. The organization left its global oil demand forecast unchanged, boosting oil prices, as markets had been expecting a drop in oil demand outlook.

WTI 1hr chart

TRADE WTI

The content provided in this material and/or any other material that this content is referred to, whether it comes from a third party or not, is for information purposes only and shall not be considered as a recommendation and/or investment advice and/or investment research and/or suggestions for performing any actions with financial products or instruments, or to participate in any particular trading strategy and cannot guarantee any profits. Past performance does not constitute a reliable indicator of future results. TopFX does not represent that the material provided here is accurate, current, or complete and therefore shouldn't be relied upon as such. This material does not take into account the reader's financial situation or investment objectives. We advise any readers of this content to seek their own advice. Without the approval of TopFX, no reproduction or redistribution of the information provided herein is permitted.

author_img

Written by:
Myrsini Giannouli

Share the article:

Latest news

main_image_market

Dollar steady ahead of key US economic data

Myrsini Giannouli 28 March 2024
main_image_market

Gold prices advance as US treasury yields decline

Myrsini Giannouli 28 March 2024

Oil prices rise on lower-than-expected US stockpiles

Myrsini Giannouli 28 March 2024

Bitcoin struggles to maintain key $70,000 level

Myrsini Giannouli 28 March 2024
Por qué TopFX
10-years
13+ años

presencia en el sector como proveedor de liquidez

Spreads
Spreads desde 0.0 pips

y una ejecución fiable

Segregated
Fondos de clientes

segregados

First-class
La mejor

atención al cliente

Abra su cuenta real en 3 pasos
Paso 1

Rellene el formulario
de registro y pulse en
"Crear cuenta".

Paso 2

Una vez esté en la zona segura de cliente, por favor proceda a cargar su prueba de identidad y prueba de dirección.

Paso 3

Cuando su cuenta real se apruebe, ¡puede depositar fondos y empezar a operar en la plataforma que quiera!

IMPORTANTE

El sitio web que está viendo ahora es operado por TopFX Global Ltd, una entidad regulada por la Autoridad de Servicios Financieros (FSA) de Seychelles con una Licencia de Agente de Valores No SD037 que no está establecida en la Unión Europea o regulada por una Autoridad Nacional Competente de la UE.

Si desea continuar, confirme que su decisión será por su propia iniciativa exclusiva, y que TopFX, o cualquier otra entidad dentro del Grupo no han realizado ninguna solicitud.

No volver a mostrar este mensaje

Cookies en TopFX

La página web de TopFX usa cookies para optimizar la experiencia del usuario.

Estas cookies pertenecen a las siguientes categorías: esenciales, funcionales y publicitarias. Las cookies publicitarias también pueden incluir cookies de terceros.

Administrar preferencias

Puede personalizar su selección de las cookies que desea aceptar.

  • Esenciales

    Estas cookies son necesarias para que la página web funcione correctamente y no se pueden desactivar.

  • Funcionales

    Las cookies funcionales permiten que la página web recuerde las preferencias de los usuarios y las elecciones que hagan en la página web, como el nombre de usuario, la región y el idioma.

  • Publicitarias

    Estas cookies se utilizan para rastrear a los visitantes en nuestros sitios web y mostrarle anuncios más relevantes. Las cookies de marketing también incluyen cookies de terceros de socios. Para obtener más información relacionada con la protección y recopilación de datos, consulte nuestra Política de privacidad y Divulgación de cookies.