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Friday, January 27, 2023

Brent Crude Rises Above $40 on U.S. Stimulus, Increasing Demand

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Brent crude climbed above $40 a barrel as global markets rallied on stimulus from the Federal Reserve and signs of increasing demand.
Futures in both London and New York rose.
India’s oil minister said consumption in the first half of June had risen to levels about 15% to 20% below a year ago, the latest sign of a recovery in global consumption.
Still, the International Energy Agency warned in its monthly report that fuel use will remain 2.5% lower next year than in 2019, mostly because of a slow rebound in jet fuel consumption.
Those concerns are being partly assuaged as the U.S. Federal Reserve said it would start buying a broad portfolio of corporate bonds, aiding sentiment across financial markets. At the same time, there’s evidence OPEC+ members are complying with extended production curbs. Saudi Arabia cut term supplies to some Asian refiners by as much as 40% and Iraq said it will make deep reductions.
OPEC and its allies have agreed to maintain production cutbacks amounting to about 10% of global supply through next month, and will hold committee meetings on Wednesday and Thursday to assess their impact.

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