Crude Oil: After losing about 4% last week, WTI crude oil prices held below $77 per barrel on Monday as rising US crude supplies and the possibility of further Federal Reserve policy tightening outweighed optimism over China’s demand recovery. Last week,
Crude Oil prices came under pressure after the US government announced plans to release 26 million barrels of oil from strategic reserves, and the most recent data pointed to a much larger than expected increase in US crude inventories.
At the March meeting of the Federal Reserve, some officials also indicated that they are open to a larger 50 basis point rate hike to control inflation, prompting investors to reduce their risk asset holdings.
In the meantime, the IEA and OPEC raised their oil demand growth projections for 2023, citing rising Chinese consumption.
Additionally, the Biden administration intends to impose additional sanctions on Russia in response to the invasion of Ukraine. These measures are said to target key industries, such as the energy sector in Russia.
