NextGen Day

Concerns over demand caused oil prices to decline steadily on Friday. The US Federal Reserve (Fed) signaled additional rate increases after increasing its benchmark interest rate by 25 basis points as investors awaited the release of China’s industrial production statistics.

At 09:37 a.m. local time (06:37 GMT), the price of international benchmark Brent crude was $82.12 per barrel, down 0.06 percent from the previous trading session’s closing price of $82.17 per barrel.

American benchmark West Texas Intermediate (WTI), which completed the previous session at $75.88 per barrel, was trading at $75.75 per barrel at the same time, down 0.17 percent.

In a report sent via email, commodity strategist Daniel Hynes of Australia and New Zealand Banking Group stated that crude oil “was basically stable as the market awaits indications of higher demand from China.”

During the Lunar New Year holidays, there was a substantial spike in traffic on the nation’s roads.

The 15 major cities’ combined congestion index also revealed a weekly increase of more than 200 percent.

Hynes continued, “Chinese traders have been comparatively absent from markets despite this fast growth in mobility.

After the US Fed raised its benchmark interest rate by 25 basis points on Wednesday in an effort to combat inflation, prices started to decline.

The Fed issued a statement saying, “Inflation has moderated somewhat but remains elevated.”

The US Federal Reserve increased the interest rate 7 times last year for a total increase of 425 basis points.

Fed Chair Jerome Powell stated that he anticipates the Federal Open Market Committee to keep raising interest rates.

We predict continued hikes because, in our opinion, our current level of policy restraint is insufficient, he said.

“It would be hasty to declare success at this point when inflation is still the greatest it has been in 40 years. Our objective is to reduce inflation, “Added he.

US crude oil inventories unexpectedly increased, adding to the downward pressure and indicating weak demand.

Energy Information Administration (EIA) statistics issued late Wednesday showed that US commercial crude oil stockpiles grew by 4.1 million barrels during the week ending January 27.

Contrary to the market’s estimate of a fall of almost 1 million barrels, inventories increased to 452.7 million barrels.

The higher-than-anticipated growth in stocks indicates a decline in US demand, which restrains the rise in oil prices.

Save/Share this story with QR CODE

---

Disclaimer

This article is for informational purposes only and does not constitute endorsement of any specific technologies or methodologies and financial advice or endorsement of any specific products or services.

📩 Need to get in touch?

📩 Feel free to Contact NextGenDay.com for comments, suggestions, reviews, or anything else.

---

We appreciate your reading. 😊Simple Ways To Say Thanks & Support Us:
1.) ❤️GIVE A TIP. Send a small donation thru Paypal😊❤️
Your DONATION will be used to fund and maintain NEXTGENDAY.com
Subscribers in the Philippines can make donations to mobile number 0917 906 3081, thru GCash.
3.) 🛒 BUY or SIGN UP to our AFFILIATE PARTNERS.
4.) 👍 Give this news article a THUMBS UP, and Leave a Comment (at Least Five Words).

---

AFFILIATE PARTNERS

World Class Nutritional Supplements - Buy Highest Quality Products, Purest Most Healthy Ingredients, Direct to your Door! Up to 90% OFF.
Join LiveGood Today - A company created to satisfy the world's most demanding leaders and entrepreneurs, with the best compensation plan today.

---