Investing.com — Oil prices held tight range on Monday amid uncertainty over drone strikes on Iranian facilities and Russia-led oversupply, but optimism on recovery in Chinese demand supported some increases.
Drone attacks on Iranian defenses over the weekend, attributed to Israel by US officials, could escalate political tensions in the Middle East, which could disrupt global oil supplies. There is a nature.
The Chinese market has reopened strongly after the Lunar New Year holiday, raising hopes that the country’s economic recovery will be a key driver of oil demand this year. Reports over the weekend showed that while the government pledged to support local economic growth, domestic travel rebounded sharply during the week-long holiday.
21:33 ET (02:33 GMT). But both contracts suffered their first weekly loss in three weeks, following data showing crude oil exports from Russia’s Baltic ports rose in January. I was.
Crude oil prices are set to end January roughly flat given a possible recovery in Chinese demand against concerns over this year’s global recession.
A Chinese recovery is expected to ultimately benefit oil demand this year, but the country is still grappling with its worst COVID-19 outbreak, raising uncertainty about the timing of such a recovery.
This week’s focus is also on the Organization of the Petroleum Exporting Countries and its allies (OPEC+) meeting, which will convene on 1 February to determine the cartels’ monthly production targets.
However, the Group is largely expected to maintain production at current levels amid the uncertainty of near-term oil demand.
Oil prices have been volatile so far this year, partly due to fears of a global recession. Q4 2022 performed better than expected, but the market fears the momentum will falter due to the impact of monetary tightening and the relatively high levels remaining.
Markets now await this week for more clues about the world’s largest economy. Key economic indicators from China and the Eurozone are also in the spotlight this week.