Oil fell by 5% due to the uncertain pace of recovery in China and the increase in inventories in the US - TopForex.Trade

Oil fell by 5% due to the uncertain pace of recovery in China and the increase in inventories in the US

Oil slips for the second time in a week amid an uncertain pace of recovery in demand in China and large inventories in the US.

Oil fell by 5% due to the uncertain pace of recovery in China and the increase in inventories in the US

Oil is losing value amid pessimism about a recovery in demand in China, while U.S. inventories continued to rise.

West Texas Intermediate oil has slipped to $75 a barrel, accounting for a 5% drop this week. China is once again resuming commodity trading, but the timing and extent of the country’s recovery are not yet clear. In the US, national assets rose.

In 2023, crude prices were in the $10 range, fluctuating on fears of a recession while waiting for a recovery in demand from China. Central banks in the US and Europe raised interest rates on Wednesday, but nonetheless, they do not intend to stop tightening monetary policy.

 

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Traders and investors also expect new sanctions on Russian oil flows. The European Union plans to ban maritime imports of Russian oil products, as well as impose price restrictions similar to those for crude oil.

The drop in crude oil this week was accompanied by lower prices for other major industrial commodities, with prices for copper and iron ore also falling.

In China, there is still uncertainty about the pace of the reopening, and large inventories in the US this week put pressure on the market.

 

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