Saturday, April 1, 2023

Texas oil rises 1% and closes at US$80.46 a barrel

The price of Texas intermediate oil (WTI) rose 1% on Monday and closed at US$80.46 a barrel after a volatile day focused on the Chinese economy and the monetary policy plans of the US Federal Reserve. (FED) ).

At the close of business in New York, a barrel of WTI for April delivery added US$0.78 compared to the close of the previous session.

US crude began the day lower after Chinese Premier Li Keqiang announced on Sunday an economic growth target of “around 5%” for 2023, which US analysts considered. low.

The goal follows the line of what was established last year -between 5 and 5.5%-, although China finally grew 3% after the harsh restrictions of its ‘zero covid’ policy in the face of the worst waves of infections.

“Many energy ‘traders’ had a growth target of close to 6%, which explains why crude fell a dollar” in the hours after China’s announcement, analyst Edward Moya of the firm said in a note. oanda.

Despite that initial disappointment, the market turned around and closed higher as perceptions took hold that the US central bank might not be as aggressive as investors recently feared in reining in inflation.

The president of the Fed, Jerome Powell, will appear this Tuesday and Wednesday before the Congress to talk about the next rise in interest rates, which will depend to a large extent on the economic data that will be published in the coming days.

Meanwhile, April natural gas futures fell 43 cents to $2.57, and April gasoline futures rose nearly five cents to $2.80.


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