Oil held a drop as investors waited for data on China’s economy and a market outlook from the Organization of Petroleum Exporting Countries that may yield clues about supply and demand in 2023.
(Bloomberg) — Oil held a drop as investors waited for data on China’s economy and a market outlook from the Organization of Petroleum Exporting Countries that may yield clues about supply and demand in 2023.
West Texas Intermediate held below $79 a barrel after falling on Monday, when there was no settlement due to a US public holiday. Beijing is due to release fourth-quarter economic growth data on Tuesday. The figures are expected to show a marked slowdown even as most traders look ahead to a likely rebound in energy demand this year following the dismantling of virus curbs.
In addition to the backward-looking data from China, OPEC is scheduled to release its monthly analysis of the global oil market. The wider 23-nation OPEC+ group agreed to collectively reduce supplies by 2 million barrels a day from November, and then hold steady for the rest of this year.
Crude has had a rocky start to 2023, sinking in the opening week on concerns over a global slowdown before rebounding. Aside from China, oil has found support from growing expectations that the Federal Reserve is nearing an end to its aggressive series of interest-rate hikes and a weakening dollar.
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