Oil prices rose slightly, but hovering around the lowest level in the two weeks today, Tuesday, after weak economic data from China and expectations for high temperatures in other places led to a decline in demand expectations.
Brent crude futures rose 0.47% to $ 77.44, and US West Texas Intermediate crude futures increased 0.45% to $ 73.50.
Brent crude was recorded yesterday at the settlement its lowest level since January 9, as the crude fell by 1.8% to 76.94 dollars a barrel, while West Texas Intermediate crude recorded its lowest level since January 2, where He decreased by 2%, to close at $ 73.31 a barrel.
Chinese shrinkage
These declines were affected by weak economic data from China (the largest oil importer) as an unexpected contraction in manufacturing activity showed this January. In addition, expectations of high temperatures in other areas have decreased expectations for oil demand.
“Cautious dealing in a risky environment, as well as the numbers of the weak Chinese purchasing directors index that increase concern about the expectations of oil demand in China, all of this may be pressure on oil prices,” said John Rong, analyst at IG.
Sanctions on Russia
It is also expected that the Chinese demand for crude oil will be affected by the latest US sanctions on the Russian oil trade. “FGE” analysts expect that the refining refineries in Shandong will lose up to one million barrels per day of crude supplies in the near term, amid a ban imposed by the Shandong Ports Group on oil tankers subject to US sanctions.
Analysts indicated that “at the same time is taking place for an alternative ore (for Russian supplies), but it comes at much higher costs.”
In the United States, weather forecast indicates higher temperatures than normal during the week, which negatively affects the demand for heating fuel after the severe cold has led to high prices of natural gas and diesel in previous sessions.
“The temperatures in the two regions (the United States and Europe) increase, allowing the demand for a bit heating fuel,” said Alex Hodes, an oil analyst at StoneX.
Financial markets were also exposed to pressure with increased interest in the low -cost artificial intelligence model launched by the Chinese company Deep Cick.
