Oil is trading down.
For the morning of this Monday, January 16both Brent and West Texas Intermediate (WTI) posted a slight drop. Nevertheless, prices headed for 2023 highs on expectations of demand recovery in China, the largest importer of crude oil globally.
Expectations of an increase in demand are result of the relaxation of covid-19 restrictions in the asian country. The last week, the nation reopened borders after three years of closure due to the coronavirus pandemic. After that, imports increased by four percent year-on-year compared to last December.
In addition to the reopening of borders, Another key factor in the recovery in demand has been the holding of the Chinese New Yearor Lunar New Year, same as coincided with the resurgence of travel, caused a rebound in traffic on the roads.
“Although China’s prospects have turned around, it must be borne in mind that the normalization of its oil demand will be gradual (…) As things stand, China’s oil recovery is still more predicted than real”, says Stephen Brennock, an analyst at PVM, according to information collected by The Economist.
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Brent and Texas oil barrel prices today, January 16: how much does it cost and how much is it trading?
According to the most recent update of Oil Price Chartsa renowned website with more than 150 global oil indices and mixes, For this Monday, January 16 at 09:30 am ET, a barrel of Brent crude is trading at $84.23 dollars, while the US equivalent, WTI, is at $78.89 dollars.
Both referentials fell a little less than one percent compared to the figures registered at the close of the day on Friday, January 13, when a barrel of Brent traded at $85.28 dollars, while West Texas Intermediate was at $79.86 dollars.