Thursday, June 8, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home investing

Oil: U.S. Crude Back at $90 on China Buying; CPI Worries Restrain Rally

10 months ago
in investing
Crude Oil Shielded From Bond and Stock Market Rout
Share on FacebookShare on Twitter


By Barani Krishnan

Investing.com — The same China that drove oil prices to six-month lows helped shore them above the $90-per-barrel zone on Monday as commodity markets were mixed ahead of this week’s much anticipated Consumer Price Index report for July.

China also surprised markets with faster-than-expected growth in oil purchases for last month. The world’s top crude importer took in 8.79 million barrels per day in July, up from a four-year low in June, but still 9.5% less than a year earlier, customs data released at the weekend showed.

“We know that oil demand in China is about 4% below what it was a year ago because of Covid lockdowns. Yet there are signs that could change,” said Phil Flynn, energy analyst at the Chicago-based Price Futures Group brokerage.

oil, which serves as the benchmark for U.S. crude, settled up $1.75, or almost 2%, at $90.76 per barrel. WTI dropped about 10% last week after striking a six-month low of $87.03.

Sunil Kumar Dixit, chief technical strategist at SKCharting.com, said a trade above $96.60 could change WTI’s short-term momentum and set it up for a rally towards $99 and $101. 

Otherwise, WTI could stumble again, resuming its journey south, toward the support cluster of $88-$85-$82, he said.

, the London-traded global benchmark for crude, settled up $1.73, or 1.8%, at $96.65. On Friday, Brent struck a six-month low of $92.79. Brent also lost 14% last week in its worst weekly loss since the COVID-19 outbreak of April 2020 that virtually destroyed energy demand.

Oil’s rebound is expected to be capped by concerns over what the CPI report for July, due on Wednesday, could be.

Economists tracked by Investing.com are projecting a growth of in the for the year to July, versus the rise of 9.1% during the 12 months to June. If true, it will be a sign that the Federal Reserve’s efforts in fighting inflation are starting to work.  

Yet, a reduction of less than half a percent in year-on-year inflation barely makes a difference to what the Fed is fighting for. The central bank, as we all know, wants to bring inflation back to its long-cherished target of 2% a year; or 4.5 times less than what the CPI was for July. 

Pump prices of U.S. gasoline — one of the biggest components of CPI — have fallen from June record highs of $5 a gallon to under $4 now. That could certainly take some heat off the headline CPI number when the July update is released on Wednesday. Despite that, core CPI, stripped off volatile gasoline and food prices, is expected to increase by month-over-month and year-on-year.

What could be worse is that the headline CPI number turns out to be higher than June’s 9.1%. There is no guarantee that it would. But if it does, then where does that leave the Fed’s policy-making Federal Open Market Committee, or FOMC?

That’s the question that’s bugging traders of oil, and other dollar-denominated commodities.

The FOMC has already hiked interest rates four times since March, bringing key lending rates from nearly zero in February to as high as 2.5% last month, in an attempt to curb inflation. The committee has another three rate revisions left before the year is over, with the first of that due on Sept. 21. 

Until the release of the July report on Friday, the consensus among money market traders was for a 50-basis point hike next month. The jobs report, however, changed all that as it confirmed an addition of 528,000 positions for July versus economists’ expectations for an increase of just 250,000 jobs.

The real problem with the strong job numbers is the attendant pressure it brings on wages. U.S. hourly wages have risen month after month since April 2021, expanding by a cumulative 6.7% over the past 16 months, or an average of 0.4% a month. 

Aside from the CPI, the figures for July will be released on Thursday, along with the weekly report on , while the will be published on Friday.

As of Monday afternoon, Investing.com’s Fed Rate Monitor Tool showed a 67% chance that the

September

rate hike will be 75 basis points — the same as in June and July. The 75-basis point hike, incidentally, was the highest in 28 years when it was introduced two months back.



in.investing.com

Latest Oil News

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023
Tags: buyingChinaCPICrudeoilRallyrestrainWorries
Previous Post

Stocks choppy after U.S. jobs report sell-off

Next Post

Gas prices have fallen. Here’s why inflation hasn’t

Related Posts

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

by Oil Market News
February 1, 2023
0

Orbital Sidekick hyperspectral imagery. Photo: Orbital Sidekick Orbital Sidekick announced a $10 million investment on Tuesday to support growing its...

Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

by Oil Market News
January 31, 2023
0

By Rachel Koning Beals 'Investment in clean-energy technologies is on the brink of overtaking fossil-fuel investments, and won't look back,'...

Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

by Oil Market News
January 30, 2023
0

DALLAS, Jan. 30, 2023 /PRNewswire/ -- The Cushing® MLP & Infrastructure Total Return Fund (NYSE: SRV) (the "Fund") today announced...

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

by Oil Market News
January 29, 2023
0

6/6 © Reuters. FILE PHOTO: Relief supplies of the "Humanitarian Help of Switzerland" are loaded onto a Boeing 747-400BCF cargo...

Chevron’s Profits Fall Short. Is This Top Warren Buffett Stock in Trouble?

Chevron’s Profits Fall Short. Is This Top Warren Buffett Stock in Trouble?

by Oil Market News
January 28, 2023
0

Chevron (CVX -4.44%) finished 2022 with a bit of a whimper. While the oil giant's profits rose compared to the prior...

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

by Oil Market News
January 27, 2023
0

© Reuters. FILE PHOTO: United Arab Emirates' Industry Minister Sultan Ahmed Al Jaber speaks during the Abu Dhabi International Petroleum...

Next Post
Gas prices have fallen. Here’s why inflation hasn’t

Gas prices have fallen. Here's why inflation hasn't

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Shares of Oil Producer ConocoPhillips Hit Record High on Q4 Earnings Beat

Shares of Oil Producer ConocoPhillips Hit Record High on Q4 Earnings Beat

1 year ago
Global warming effect of methane from US Permian draws fresh scrutiny

Global warming effect of methane from US Permian draws fresh scrutiny

1 year ago
Should Oil & Gas Midstream Stock Cheniere Energy, Inc. (LNG) Be in Your Portfolio

Should Oil & Gas Midstream Stock Cheniere Energy, Inc. (LNG) Be in Your Portfolio

8 months ago
Global Gas Sensors Market and the Affects of the Coronavirus to 2021 – Featuring MSA,

Global Gas Sensors Market and the Affects of the Coronavirus to 2021 – Featuring MSA,

1 year ago
The Petrochemical Industry Is Set To Explode

The Petrochemical Industry Is Set To Explode

12 months ago
ADVERTISEMENT
Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

Opec bans prominent media groups from Vienna meeting

June 4, 2023

Saudi Arabia’s ‘prickly prince’ of oil bristles as crude price slides

June 3, 2023

Crude Oil

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

4 Days from Deadline, EU Fails To Agree On Russian Oil Products Price Cap

February 1, 2023
Oil rises after U.S. fuel stocks draw down; economic concerns loom

Oil prices settle steady on higher U.S. demand, weaker dollar

January 31, 2023
S&P 500 Down 1%; Crude Oil Drops Over 2%

S&P 500 Down 1%; Crude Oil Drops Over 2%

January 30, 2023
Russia Can’t Replace the Energy Market Putin Broke

Russia Can’t Replace the Energy Market Putin Broke

January 29, 2023

Investing

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

Orbital Sidekick Raises $10M Investment to Monitor Oil and Gas Industry from Space 

February 1, 2023
Crude Oil Shielded From Bond and Stock Market Rout

Clean-energy investing poised to top money backing oil and gas after hitting a record

January 31, 2023
Crude Oil Shielded From Bond and Stock Market Rout

The Cushing® MLP & Infrastructure Total Return Fund Announces Fund Name Change

January 30, 2023
Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

Boeing’s 747, the original jumbo jet, prepares for final send-off By Reuters

January 29, 2023

Market

Canadian refiner Irving Oil explores options including sale

Canadian refiner Irving Oil explores options including sale

June 8, 2023
UK watchdog bans Shell, Repsol and Petronas greenwashing ads

UK watchdog bans Shell, Repsol and Petronas greenwashing ads

June 7, 2023
Opec+ is not on board with Saudi’s ‘whatever it takes’ message

Opec+ is not on board with Saudi’s ‘whatever it takes’ message

June 6, 2023
Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

Saudi Arabia seeks to boost oil price with output cut of 1mn barrels a day

June 5, 2023

OPEC

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

US Close- Fed signals more hikes coming, Powell says disinflation process begun, ADP

February 1, 2023
‘OPEC does not control the price’: OPEC President | OPEC News

‘OPEC does not control the price’: OPEC President | OPEC News

January 31, 2023
OPEC+ Closely Watches Chinese Factory Data

OPEC+ Closely Watches Chinese Factory Data

January 30, 2023
Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

Week Ahead: FOMC, BOE, ECB, OPEC, NFP and Big Tech Earnings

January 29, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.