Crude Oil prices rise for the third straight day

9 Feb 2023 , 09:16 AM

On Wednesday, oil increased for a third straight day as market anxiety over U.S. interest rates subsided a little bit and a report from the industry suggested that U.S. crude stockpiles had decreased.

Jerome Powell, the chair of the U.S. Federal Reserve, made some remarks on Tuesday that were perceived as less hawkish than anticipated, increasing risk appetite and depressing the value of the dollar. Oil priced in dollars becomes more affordable for buyers using foreign currencies when the U.S. dollar declines.

Brent crude increased 80 cents, or 1%, to $84.49 per barrel. WTI crude for the United States increased by 93 cents, or 1.2%, to $78.07.

The market is hopeful that with less aggressive U.S. rate increases, the world’s largest economy can avoid a severe downturn or perhaps a recession that would affect oil consumption. Meanwhile, the lifting of COVID-19 restraints in China is also anticipated to boost fuel consumption.

OPEC and its allies, collectively referred to as OPEC+, decided last week to maintain output cuts, and an Iranian source said on Wednesday that the organization is likely to maintain the present course of action at its next meeting.

Crude oil flows from Iraq and Azerbaijan out of the Turkish port of Ceyhan were halted by the earthquake that slammed Turkey and Syria on Monday. BP Force majeure has been imposed by Azerbaijan on all shipments of Azeri crude oil from the port. Resuming flow on Tuesday was the Iraqi pipeline to Ceyhan.

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