Fluctuations in Crude Oil Prices Continue

Thomas Seattle
Thomas Seattle Finance
3 Min Read

Crude oil prices fluctuated on Monday due to the persisting worries over substantial inflation and increasing U.S. interest rates as investors prepared for further insight into demand from crucial Chinese economic reports this week.

China’s Reopening Is A Long-Awaited Development For Crude Oil

This Wednesday, China’s Purchasing Managers’ Index (PMI) reading for February 2021 is set to be released. Although the January figures showed a moderate recovery from the global pandemic in its biggest crude oil importer nation, its manufacturing sector isn’t expected to improve significantly. After experiencing three years of COVID-19 lockdowns and a decrease in foreign demand, PMI results are forecasted to remain below average come Wednesday.

Brent oil futures surged 0.1% to $82.90 a barrel, while West Texas Intermediate crude oil prices skyrocketed by 0.2% to an impressive $76.45 a barrel as of 20:50 ET (01:50 GMT). Despite the prediction that global demand for crude oil will reach historical heights this year with China’s recovery, markets remain uncertain on when precisely such growth might occur due to the nation still grappling with numerous COVID-19 cases and lagging inflation numbers in addition to weakened manufacturing activity worldwide.

fluctuations in crude oil prices continue


Fed Decisions Are One of the Biggest Reasons for  Oil Concerns

Crude oil prices have traded lower throughout the year due to a combination of mixed demand signals, fears regarding increasing interest rates, and slowing economic growth. The market’s main source of stress has been an overvalued dollar in relation to robust U.S inflation data reported earlier this month. Attention is now on Friday’s report for nonfarm payrolls, which analysts forecast will demonstrate endurance within the job sector.

On Monday, the dollar maintained its position near a two-month apex in comparison to an array of foreign currencies. Investors express alarm that burgeoning interest rates could have negative repercussions on global economic activity and crude oil demand. Additionally, weekly U.S inventory builds hint at diminishing consumption in the United States – the world’s leading consumer of crude oil – further deepening apprehension among markets.

In recent trading sessions, the possibility of a reduced global supply bolstered crude oil prices. Reports indicated that Russia’s planned production cuts may be more extensive than originally communicated to cope with price limits imposed by Western countries on its oil exports.

You might check: NFT Video Games Might Be a Revolution in Gaming

Share this Article
I graduated from Lancaster University and currently working in the financial services industry. I’m a goal-driven journalist who tracks down personal and corporate finance stories and delivers on deadline and a reporter/editor with extensive experience in newspapers, magazines and the internet in public and private markets, equity and debt, M&A, banking, fintech areas.
Leave a comment

Leave a Reply

Your email address will not be published. Required fields are marked *