SINGAPORE, Feb 13 (Reuters) – Oil prices edged lower on Monday after rising 2% in the previous session, as investors focused on upcoming US inflation data and short-term demand concerns stemming from refinery maintenance in Asia and the United States. Did.
Brent crude futures fell 74 cents, or 0.9%, to $85.65 a barrel by 0400 GMT, after gaining 2.2% on Friday. US West Texas Intermediate crude was down 73 cents, or 0.9%, at $78.99 a barrel after rising 2.1% in the previous session.
OANDA senior analyst Edward Moya said, “Crude prices are softening as energy traders fear a potential weakening of crude demand, as inflation reports suggest the Fed may need to tighten policy more aggressively.” Might force you to toughen up.” 14.
“This week could make or break how bearish Wall Street prices get worse.”
The US Federal Reserve is raising interest rates to rein in inflation, raising concerns that the move will slow economic activity and oil demand.
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Additionally, Sunday’s resumption of Azerbaijani oil exports at Turkey’s Ceyhan terminal also fueled supply concerns, said Tina Teng, analyst at CMC Markets.
The terminal was damaged in last week’s devastating earthquakes in Turkey and Syria. It is a storage and loading point for pipelines carrying oil from Azerbaijan and Iraq.
Oil prices were edged higher on Friday after Russia, the world’s third-biggest oil producer, said it would cut crude output by 500,000 barrels per day (bpd), or about 5%, in March, which would limit its exports. But it was in retaliation for the Western sanctions. Imposed in response to the Ukraine conflict.
On a weekly basis, both Brent and WTI contracts rose more than 8% last week, buoyed by hopes of a recovery in demand in China, the world’s top crude importer and No. 2 oil consumer, after COVID restrictions ended in December.
China’s improving oil demand is curbing its gasoline exports in February, though its refiners are maintaining diesel shipments above 2 million tonnes.
Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore, said a 500,000 bpd cut would bring Russia back in line with its OPEC+ quota as Moscow is currently exporting more.
The Organization of the Petroleum Exporting Countries (OPEC) and their allies including Russia, a grouping known as OPEC+, agreed in October to cut production by 2 million bpd, which is about 2% of world demand.
OPEC country officials told Reuters that oil prices could return to $100 a barrel again later this year on a recovery in Chinese demand and limited supply growth due to lack of investment.
Reporting by Florence Tan in Singapore and Emily Chow in Kuala Lumpur; Editing by Christian Schmollinger
Our Standards: The Thomson Reuters Trust Principles.
Source: www.reuters.com
