Commodity News
HeadLine : Oil prices rise as US recession fears over rate hikes ease, dollar weakens
Date : Feb 1 2023
Oil prices climbed on Wednesday underpinned by a weaker dollar, which fell on signs of slowing inflation in the United States, easing fears that the world's largest oil user may face a recession because of further interest rate hikes. Brent crude futures gained 20 cents, or 0.2%, to $85.66 a barrel, while U. S. West Texas Intermediate (WTI) crude futures rose 34 cents, or 0.4%, to $79.21 a barrel, extending gains of about 1% in the previous session. Tamer rate hike expectations helped lower the dollar index, which supported oil prices as a weaker greenback makes the commodity cheaper for buyers holding other currencies. All eyes will be on a meeting on Wednesday of the Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, where producers are expected to endorse their current output targets agreed in November. The shortfall was bigger than the deficit of 780,000 bpd in December. Data from the American Petroleum Institute industry group showed crude stocks rose by about 6.3 million barrels in the week ended Jan. 27, according to market sources.That was a bigger build than the 400,000 barrels that analysts polled by Reuters had expected on average.

Source: Reuters
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