fbpx
Skip to content Skip to sidebar Skip to footer

Oil Regains Footing as Demand Side Strong

  • Oil remained resilient in Asian trading as traders focused on renewed demand from the region which is progressively opening up to travelers.
  • Continued supply disruption from the ongoing war in Ukraine likely to have more of an impact than the prospect of a recession in the U.S. from central bank policy tightening.

After a dive of 7% the past Friday, oil has regained its footing in Asia with traders considering the possibility of greater short-term demand as more economies in the region open up to travel, overshadowing concerns that U.S. monetary tightening and fears of an impending recession.

West Texas Intermediate (WTI) traded north of US$109 a barrel, with ‘worry’ being the pervasive sentiment amidst fears of the Fed raising rates which will derange the financial markets.

Oil prices skyrocketed this year stemming from the war on Ukraine, disrupting supplies just after a surge in consumption as pandemic restrictions get lifted. Notwithstanding the turbulence of the market after the recent Fed hike, high oil prices are likely here to stay if the war persists and keeps Russian crude off global markets.

Moreover, the oil market is currently parked in backwardation (where short-term prices trade higher than longer-dated ones), suggesting tight supplies, but expectations that in the long-term, either a recession will dent demand, or Russian supply rejoins global markets.

Leave a comment

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain & crypto news provider, covering daily news focused on trading and investment developments in bitcoin and crypto. We bring you expansive crypto news coverage around the world. We offer many thought leadership opinions from blockchain experts and leaders of the industry.

Subscribe to SCN

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

111 North Bridge Road, 21-01, Peninsula Plaza, Singapore 179098.

Phone: +65-80282938

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us

About SuperCryptoNews

SuperCryptoNews is a global leading blockchain and crypto news provider, covering daily news on the latest tech and trading developments in crypto. We bring you expansive crypto news coverage especially in Asia, with a focus on Singapore, Thailand and Southeast Asia.

Follow Us On

© Copyright of Novum Global Consultancy Pte Ltd {2020, 2021}. All rights reserved.

Contact Us   |   T&Cs   |   Privacy Policy   |   About Us