InfoQuest – Oil prices fell today (April 16) as concerns about supply and conflict risks eased in the wake of the Iranian attack on Israel over the weekend. The positive factors were overshadowed by Chinese economic data that grew faster than expected.
In addition, oil prices were pressured by concerns that US interest rates may remain high for longer than expected. As a result, demand for oil decreased.
At 6:36 PM Thailand time, the price of West Texas Intermediate (WTI) crude for May delivery rose. It fell by 0.31, or -0.36%, to $85.10 per barrel.
China's National Bureau of Statistics reported today that the gross domestic product of China, the world's largest oil importer, expanded 5.3% year-on-year in the first quarter of 2024. This is stronger than analysts' expectations of growth of just 4.6% and better than the 5.2% expansion in the quarter. Fourth of 23.
However, Chinese officials issued several weak economic data. Including a decline in investment in China's real estate sector. Additionally, US retail sales came in stronger than expected, leading the market to believe that the Federal Reserve may keep interest rates high for longer than expected.
“Oil prices will reach $100 per barrel,” said Tamas Varga, an analyst at PVM. Only if there is a major disruption to oil production, supply or transportation. But at the moment it seems unlikely that something like that will happen.”
In addition, the market is closely following the situation between Iran and Israel. Written by Mr. Ebrahim Raisi, President of Iran, speaking today according to ISNA. Iran will respond to any actions that conflict with its interests.
The statement came a day after Israel warned that it would respond to the Iranian drone and missile attack on Israel over the weekend.
Iran is a major producer of crude oil within OPEC, with a production volume of more than 3 million barrels per day.
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