Oil closed lower on Wednesday (15) pressured by the strong dollar, as it increases the prospect of a Federal Reserve (Fed, the US central bank) more hawkish, and the rise in commodity stocks in the United States. Investors also monitor Chinese demand.
On the New York Mercantile Exchange (Nymex), WTI oil for March 2023 closed down 0.59% (US$0.47), at US$78.59 a barrel, while Brent for April, traded on the Intercontinental Exchange (ICE), fell 0.23% ($0.20) to settle at $85.38 a barrel.
Oanda analyst Edward Moya notes that oil prices were pressured by the dollar’s rally after economic data suggested further monetary tightening by the Federal Reserve.
Retail sales and the Empire State Industrial Activity Index, which measures manufacturing conditions in New York State, rose above market expectations.
Contracts also extended declines after US crude inventories rose sharply last week.
“The data suggests that the Department of Energy (DoE) underestimated not only daily domestic oil production, but also likely underestimated net imports of crude oil and overestimated refinery operations,” said Troy Vincent, senior market analyst at DTN. .
Oil even operated at a high, in the final stretch of the trading session, but quickly undone the movement. The market monitors signs of demand in China, which showed growth in domestic and international travel after reopening, especially derivatives such as diesel.
However, TD Securities warns that crude oil prices “still have a long way to go before they are consistent with a sustained uptrend”.
Source: CNN Brasil
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