WTI futures have picked up following a negative market opening on Monday. The West Texas intermediate retreated to $82.55 lows on the Asian and early European sessions to pare losses during the US session and return to the $84.70 area.
The confirmation of Chinese President Xi Jinping for an unprecedented third time over the weekend has hit crude prices. Investors are wary that his commitment to the Zero-COVID policy may lead to new lockdowns in the country that will, ultimately, depress demand for oil from the world’s major importer.
In this scenario, the upbeat Chinese GDP, which has shown a 3.9% yearly growth in the third quarter, beating market expectations of a 3.4% increase, has been practically unnoticed,
On the other hand, a European ban on Russian crude oil, expected to come into effect in December, as part of a new set of sanctions, for the Ukrainian war, is providing some support, as the eurozone leaders struggle to find alternative providers ahead of the winter.
Furthermore, official data revealed last week that the US Strategic Petroleum reserves have dropped to their lowest level since 1984 in the week of October 14th, while the EIA reported a 1.725M decline in crude oil inventories in the same week. These figures have avoided a sharper decline in crude prices.
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.