Showing posts from March 5, 2023

Oil prices show no sign of irreversible recovery, defying model based predictions

  The price of crude oil remains in the volatile territory, despite the encouraging news on the Chinese factory activities, indicated by its long-waited Manufacturing Managers' Purchasing Index, known as the PMI; it has gone up by 2.6% in February, relative to what it was in January, 2023. Investors are now concerned about the new GDP figure set by the Chinese, a 5%, a fall from estimated 5.24% by analysts. China's own target last year was 6%.  The revised official figure, along with the rising US crude inventories and falling natural gas prices, appears to be forming a resistive factor against a steep rise in crude oil price. The combined impact of the factor in question on crude oil prices could be further strengthened in the event of the US Federal Reserve raising interest rates again. The Chinese have been realistic while revising down the GDP figure, though: its 'Cold War' with the US, both at diplomatic and economic levels, shows no sign of abating, despite the op

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