Sign up to create alerts for Instruments,
Economic Events and content by followed authors
Free Sign Up Already have an account? Sign In
EL LA
Feb 13, 2023 3:53PM ET
wag the dog
0
0
Quotes
All Instrument Types
- All Instrument Types
- Indices
- Equities
- ETFs
- Funds
- Commodities
- Currencies
- Crypto
- Bonds
- Certificates
Please try another search
🙌 It's Here: the Only Stock Screener You'll Ever Need Get Started
Oil edges higher as market weighs Russian supply cuts amid demand fears
Published Feb 12, 2023 09:04PM ET
Updated Feb 13, 2023 03:22PM ET
© Reuters. FILE PHOTO: A container ship sails along Nakhodka Bay near the oil terminal in the port city of Nakhodka, Russia August 12, 2022. REUTERS/Tatiana Meel
By Arathy Somasekhar
HOUSTON (Reuters) -Oil prices edged higher on Monday, rebounding from early losses, as investors weighed Russia's plans to cut crude production and short-term demand concerns ahead of U.S. inflation data this week.
Brent futures for April delivery rose 22 cents, or 0.3%, to $86.61 a barrel, while U.S. crude rose 42 cents, or 0.5%, to $80.14 per barrel gain.
"The fundamental backdrop for oil is still very strong," said Phil Flynn, analyst at Price Futures Group.
"With China reopening, we will see more demand and Russia and OPEC has the same or less supply, which is bullish."
Oil prices rose on Friday to their highest in two weeks after Russia, the world's third-largest oil producer, said it would cut crude production in March by 500,000 barrels per day (bpd), or about 5% of output, in retaliation against Western curbs imposed on its exports in response to the Ukraine conflict.
The United Arab Emirates' energy minister said there was no need for the OPEC+ group of oil-producing nations to meet earlier than scheduled as the market was balanced.
Both the Brent and WTI contracts rose more than 8% last week, buoyed by optimism over demand recovery in China after COVID curbs were scrapped in December.
U.S. main stock indexes also rose on Monday.
The U.S. Federal Reserve has been raising interest rates to rein in inflation, leading to concerns the move would slow economic activity and demand for oil.
"It is difficult to overstate the importance of this single data point, as traders and the Fed look for confirmation of the gradual downward trend of the past few months," said Matthew Ryan, head of market strategy at financial services firm Ebury.
Additionally, supply concerns were relieved somewhat as a cargo of Azeri crude set sail from Turkey's Ceyhan port on Monday, the first since a devastating earthquake in the region on Feb. 6.
Ceyhan is the storage and loading point for pipelines that carry oil from Azerbaijan and Iraq.
Also on the supply side, U.S. shale crude oil production in the seven biggest shale basins is expected to rise to its highest on record in March, the Energy Information Administration said on Monday.
Related Articles
Comments (4)
jason xx
Feb 13, 2023 10:09AM ET
One CPI report is not a make or break moment market participates are just soft as a grape
3
0
Stephen Fa
Feb 13, 2023 10:01AM ET
Until Fed rates are at or above average US inflation rate, pivot hopes are delusion.
2
2
jason xx
Feb 13, 2023 10:01AM ET
The fed doesn't have to pivot for the market to go up thats the part that is delusional
2
2
JIM VETTER
Feb 13, 2023 10:01AM ET
Aisha Rio
Feb 13, 2023 9:00AM ET
Putin and uncle arab will not sell cheap2 oil even fed increase rate non-stop.
6
1
Add Chart to Comment
Confirm Block
Are you sure you want to block %USER_NAME%?
By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.
%USER_NAME% was successfully added to your Block List
Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.
Report this comment
I feel that this comment is:
Comment flagged
Thank You!
Your report has been sent to our moderators for review
Add a Comment
We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
Enrich the conversation, don’t trash it.
Stay focused and on track. Only post material that’s relevant to the topic being discussed.
Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.