Oil prices continue to rise moderately on Tuesday morning, recovering from a decline over the past seven weeks.
The price of February futures for Brent on the London ICE Futures exchange at 7:07 a.m. is $76.54 per barrel, which is $0.51 (0.67%) higher than at the close of the previous session. On Monday, these contracts rose in price by 19 cents to $76.03 per barrel.
Quotes for January futures for WTI in electronic trading on the New York Mercantile Exchange (NYMEX) by this time increased by $0.54 (0.76%) to $71.86 per barrel. At the end of the previous session, they rose by 9 cents to $71.32 per barrel.
Prior to that, both brands had been in the red for seven weeks in a row, which has not been seen since 2018.
The day before, oil rose in price “due to short-term oversold conditions in the futures market” after WTI quotes tested a key resistance level, said Tyler Ritchie, editor of Sevens Report Research. The market was also supported by improved investor sentiment and demand for risky assets, he added.
At the same time, a negative factor was the data that consumer prices in China in November fell by 0.5% in annual terms, the highest rate in three years. Deflation in China was recorded for the second month in a row, which indicates a weakening in demand for raw materials for the industrial sector, Market Watch notes.
“We see that growth is weakening in China, Europe is in recession or on the verge of recession, and the US economy has also slowed down, although not as much as others,” said JonesTrading analyst Mike O’Rourke. – “That’s why the price of WTI remains around $70 per barrel.
