Oil prices have not changed in anticipation of the OPEC report and fears of recession

Oil prices have not changed in anticipation of the OPEC report and fears of recession

Deltafx Admin 17 January 2023

Oil prices were little changed Tuesday as markets waited for a series of economic readings this week to assess the potential for a recession. The market also focused on demand forecasts from several key industry associations, starting with OPEC.

Given that overall growth for 2022 had slowed significantly from a year earlier, the absence of a rise in crude oil prices suggests that China’s economy grew faster than expected in the fourth quarter.

However, improving trends in retail sales, inflation and industrial production in China helped boost optimism about an economic recovery in the world’s largest crude oil importer.

London Brent futures rose 0.3 percent to $84.44 a barrel, while West Texas Intermediate was up 0.2 percent at $79.31 at 22:02 local time (03:02 GMT). Each barrel arrived. Both contracts fell about 1 percent on Monday.

The main focus now is on the monthly report from the Organization of Petroleum Exporting Countries (OPEC), which will be released later Tuesday. Traders will be watching for a change in the cartel’s demand forecast for the year as a Chinese recovery and possible global recession are expected.

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