{"id":3539,"date":"2023-02-07T14:24:03","date_gmt":"2023-02-07T14:24:03","guid":{"rendered":"http:\/\/roydadnaft.ir\/English\/?p=3539"},"modified":"2023-02-07T14:24:05","modified_gmt":"2023-02-07T14:24:05","slug":"oil-rises-on-china-outlook-supply-worries-after-turkey-earthquake","status":"publish","type":"post","link":"https:\/\/roydadnaft.ir\/English\/3539\/","title":{"rendered":"Oil rises on China outlook, supply worries after Turkey earthquake"},"content":{"rendered":"
\n

Oil prices rose for a second straight session on Tuesday, driven by optimism about recovering demand in China and concerns over supply shortages following the shutdown of a major export terminal after an earthquake in Turkey.<\/p>\n\n\n\n

Brent crude futures were up 73 cents, or 0.9%, to $81.72 per barrel at 1334 GMT, while West Texas Intermediate U.S. crude futures rose 87, or 1.2%, to $74.98 per barrel.<\/p>\n\n\n\n

“The price of the barrel is finding support as the reopening of the Chinese economy, following the end of the zero-COVID policy, is expected to drive a significant increase in demand for crude this year,” said ActivTrades analyst Ricardo Evangelista.<\/p>\n\n\n\n

The International Energy Agency (IEA) expects half of this year’s global oil demand growth to\u00a0come from China, the agency’s chief said on Sunday, adding that jet fuel demand was surging.<\/p>\n\n\n\n

Saudi Arabia, the world’s top oil exporter, raised prices for its flagship crude for Asian buyers for the\u00a0first time in six months\u00a0amid expectations of demand recovery, especially from China.<\/p>\n\n\n\n

Operations at Turkey’s 1 million barrel per day (bpd) oil export terminal in Ceyhan were\u00a0halted after a major earthquake\u00a0hit the region. The BTC terminal, which exports Azeri crude oil to international markets, will be closed on Feb. 6-8.<\/p>\n\n\n\n

Iraqi crude oil loadings from storage in Ceyhan was ready for resumption on Tuesday, but bad weather was preventing vessels from berthing, a trade source with direct knowledge said. Meanwhile, Iraq’s crude oil pipeline to Turkey’s Ceyhan port was still halted, the Kurdistan Regional Government’s (KRG) energy ministry said.<\/p>\n\n\n\n

The shutdown of the 535,000-bpd Phase 1 part of the\u00a0Johan Sverdrup\u00a0oilfield in Norway’s area of the North Sea also boosted prices.<\/p>\n\n\n\n

Oil markets will watch U.S. Federal Reserve chair Jerome Powell’s speech on Wednesday, analysts said. Interest rate hikes typically strengthen the dollar, which could make crude more expensive for non-U.S. buyers.<\/p>\n\n\n\n

“The rebound in oil prices is more like a cautious move ahead of Fed Powell’s speech tomorrow, when the Fed chairman may provide more clues on the future rate hike path,” said Tina Teng, an analyst at CMC Markets.<\/p>\n\n\n\n

BP\u00a0(BP.L)\u00a0on Tuesday reported a\u00a0record profit\u00a0of $28 billion for 2022 while boosting its dividend in a sign of confidence as it sharply raised overall spending plans but scaled back ambitions to reduce oil and gas output by 2030.<\/p>\n

Updated on