Fundamental analysis
06 February, 2023
Oil prices were little changed on Friday, with major benchmarks headed for their second straight week of losses, as the market awaited further signs of fuel demand recovery in China to offset looming slumps in other major economies. So far this week, Brent has dropped more than 5%, extending a 1% loss from the previous week. WTI has also fallen by nearly 5%, after sliding 2% in the prior week. Mixed signals on fuel demand recovery in China, the world's top oil importer, have kept a lid prices. ANZ analysts pointed to a sharp jump in traffic in China's 15 largest cities following the Lunar New Year holiday, but also noted that Chinese traders had been "relatively absent". The prospect of an economic rebound in China after COVID-19 curbs eased has buoyed the oil market so far this year, along with a weaker dollar that makes the commodity cheaper for those holding other currencies. Fears over potential slower growth in the US, Europe and other countries have also affected prices.
