Crude Oil Price Drop in the Asian MarketDeltafx Admin 25 January 2023
Despite the reopening of the economic borders of China, one of the largest consumers of crude oil in the world, the price of crude oil fell in Asian retail trade today;
oil prices eased slightly on Monday as traders awaited further signs of economic recovery in China. However, due to the Chinese New Year holiday, there was a decline in transaction volume in Asian markets.
Due to the week-long Chinese New Year holiday and the lifting of Covid 19 restrictions in China, as well as the reopening of international borders, the Chinese economy is expected to recover.
The prospect of a return of Chinese demand had led to a rise in oil prices in recent weeks, and major industry associations also expect the Chinese economy to recover in the coming months due to the increase in demand after the holiday. In China, economic analysts do not expect demand for Chinese food to increase to the extent it did before the Corona epidemic.
Due to the re-emergence of the Corona virus in China, analysts also cannot accurately estimate when China’s demand for crude oil will increase again.
The price of Brent oil futures on Asian markets fell 0.5% to $87.25 per barrel, and the price of West Texas Intermediate crude fell 0.4% to $81.31 per barrel.