All Eyes on China This Week
(The views and opinions expressed in this article are those of the attributed sources and do not necessarily reflect the position of Rigzone or the author)
In this week’s preview of what to watch in oil and gas markets, Rigzone’s regular energy prognosticators focus on China’s reopening, oil price expectations, U.S. cold fronts and more. Read on below to find out the specifics.
Rigzone: What developments/trends will you be on the lookout for this week?
Barani Krishnan, Senior Commodities Analyst at uk.Investing.com: The ‘China reopening story’ and a deluge of optimistic forecasts of late on oil, including a rare optimistic estimate from the Paris-based International Energy Agency, has helped crude prices to post a year-to-date gain for 2023 despite a dismal opening for the year. What we need is ‘real’ hard numbers from February onwards of the so-called crude demand from China. I expect crude prices to rise just on thin air again over the next two weeks. This will complete the positive January trading that oil bulls are yearning for, after losses in six of the seven previous months. Beyond that, their bull alone won’t work - real data will be needed.
Tom Seng, Assistant Professor in Energy, Texas Christian University’s Ralph Lowe Energy Institute: Cold fronts have moved into the U.S. West and are expected to bring snow and lower temperatures across the Upper-Midwest and Central Plains. Traders will be watching for actual crude demand coming from China as well as, any continuing uptick in refinery utilization.
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