Oil stabilizes following five days of growth

In anticipation of new data on U.S. inflation, oil is stabilizing after five successive days of growth. There’s also an increase in crude oil purchases registered in China on the eve of the Lunar New Year holidays.

On Wednesday, Brent oil rose by 3.1%. Its price then fluctuated around the level of $77. Investors are now focused on the U.S. consumer price index read. The new reading is to be published on Thursday, and this information will shed some light on the further path of monetary policy in the world’s largest economy.

Concerning China, there’s now more and more optimism among market participants regarding the outlook for the nation’s demand after Beijing issuing a large import quota and increasing purchases of crude oil. This was stated by James Whistler, managing director of Vanir Global Markets Pte. He also added that Chinese purchasers provide active support for the market.

Jeff Currie, Head of Commodities Research at Goldman Sachs Group Inc., also shared his opinion on the prospects of the oil market. According to his view, Brent oil price may exceed $110 per barrel by the third quarter of the current year. As said by Currie, it will be possible if Asian economies, and China in particular, go through full reopening after Covid restrictions. Meanwhile, top hedge fund manager Pierre Andurand suggests that the oil price might rise above $140 in 2023.