Oil Prices Rise After Bruising Losses in Previous Session
Oil Prices Edging Higher in Early U.S. Trading
Oil prices edged higher in early U.S. trading on Thursday, regaining some ground after slumping to a six-month low in the prior session. By 09:27 ET (14:27 GMT), the futures traded 1.2% higher at $70.49 a barrel, while the Brent contract climbed 1.2% to $75.19 per barrel.
Concerns Over Fuel Demand in China
Chinese customs figures showed that crude oil imports in November slipped by 9% compared to the same period last year, exacerbating fears over demand in the country and limiting oil price gains.
Moody’s Downgrades China’s Sovereign Debt Rating
A decision by rating agency Moody’s to downgrade the outlook for China’s sovereign debt rating earlier this week has also dented investor sentiment. Moody’s flagged increased risks to the world’s second-largest economy from a property market meltdown, as well as a lack of clear policy support from the government.
Market Concerns and OPEC+ Voluntary Cuts
Markets were also worried by a higher-than-expected build in U.S. gasoline stocks, hinting at faltering demand in the world’s biggest oil consumer. On Wednesday, Russian President Vladimir Putin met with Saudi Crown Prince Mohammed bin Salman to discuss OPEC+ member states. Oil prices have slipped by around 10% since OPEC+ announced output reductions last week.
Anticipated Impact of OPEC+ Announcements
While the OPEC+ announcement underwhelmed markets, it is still expected to help tighten crude markets marginally in the first quarter of 2024. Analysts expect oil to trade in the low $80s in early-2024.
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