Crude oil prices rise marginally in early trade

16 Mar 2023 , 08:24 AM

Early on Thursday in Asian trading, oil prices increased, recovering some of the more than one-year lows seen in the previous session as markets began to cool off after Swiss regulators gave Credit Suisse a financial lifeline.

Brent crude futures were up 85 cents, or 1.2%, to $74.54 per barrel. WTI crude futures increased by 74 cents, or 1.1%, to $68.35 a barrel.

In the early part of Thursday’s session, both benchmarks increased by more than $1.

After falling for three straight days, they fell to their lowest points on Wednesday since December 2021. Since Friday’s finish, Brent has fallen around 10%, while U.S. crude has lost about 11%.

Given that the eurozone economy is strengthening and inflation is expected to stay high for years, policymakers at the European Central Bank are expected to tilt towards raising interest rates by half a percentage point later on Thursday.

If economic development slows, higher interest rates might cause a decline in oil consumption, but worries about a banking sector financial crisis getting worse could also have an impact.

In the meantime, statistics showed that when the tight COVID-19 containment restrictions were lifted, China’s economic activity increased in the first two months of 2023.

A day after OPEC raised its projection for Chinese oil demand in 2023, the International Energy Agency warned of an expected increase in Chinese oil demand in its monthly report released on Wednesday.

For feedback and suggestions, write to us at [e-mail]