Oil Prices Experience Modest Increase
Today, oil prices have risen slightly, although they remain close to their lowest levels in the past two weeks, indicating ongoing market dynamics.
The uptick in oil prices observed today (Tuesday, January 28, 2025) is largely attributed to technical factors after prices had previously reached a significantly low threshold.
Weak economic data from China and predictions of warmer weather in the United States this winter have contributed to a decline in demand for oil.
Following the reopening of Asian markets, North Sea Brent crude oil experienced a rise of 12 cents, reaching $77.20 per barrel. Similarly, West Texas Intermediate (WTI) crude rose by 10 cents, trading at $73.27 per barrel.
These figures represent the lowest levels seen over the past few weeks after the 9th of January.
On Monday, the National Bureau of Statistics of China, the world’s largest oil importer, reported a slowdown in industrial activity for January – raising concerns regarding diminishing global demand for oil.
Tony Sycamore, a market analyst at IG, noted, “The recent data from China has led to a drop in oil prices, coinciding with a decrease in the stock prices of technology companies in the U.S.”
Additionally, it is anticipated that due to sanctions on Russia, there may be a further contraction in China’s oil imports.
Forecasts suggest that as a result of these sanctions, Chinese imports will fall to nearly one million barrels per day.
Furthermore, a U.S. weather agency has predicted a warm weather pattern this week, which poses additional implications for oil prices.