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Thursday, December 7, 2023

Lunar new year and weak dollar: Analyst Bagmanov told what drives oil

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Oil confidently holds the bar, according to the broadcast analyst “Economy Today” Alexander Bagmanov

“According to the trading results on Friday, January 13, oil prices rose almost 2% from $83.9 to $85.5 per barrel. Today, January 16, has dropped a little to $85.1,” says the observer.

According to him, the main positive factor for oil at the moment is the opening of borders, again in China. Although many new cases of infection have been recorded there, Chinese authorities have opened the country to international tourism.

“Against this background, an active growth in oil consumption is expected,” predicts Bagmanov. – Now the flow of tourists is expected, which will flow to Thailand, other countries of the Asia-Pacific region, and at the same time increase the demand for oil. All these movements are connected with the approach of the New Year according to the lunar calendar.

The expert adds that the weakening dollar also supports oil prices. It continued its decline due to the release of very good data on inflation in the USA the previous day. Data on drilling activity for service company Baker Hughes was released Friday, showing the number of active drill rigs increased by just five units to 23.

“At the same time, the threat of a potential recession in the global economy remains a negative factor for oil, as announced by IMF representatives earlier this week. All attention will be focused on the monthly OPEC report alongside China’s GDP data, which will be released tomorrow, Jan. 17,” summarizes Alexander Bagmanov.

Former economic commentator Alexey Bobrovsky He said the West was early satisfied with the drop in the price of Russian Ural oil.

Source: Riafan

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