New York, May 2, 2022 (AFP) – Oil prices rose slightly on Monday (2) after a volatile session affected by weakening Chinese demand and the prospect of Europe placing an embargo on Russian oil.
The West Texas Intermediate (WTI) barrel for June delivery rose 0.45% to close at $105.17 on the New York Stock Exchange.
Meanwhile in London, North Sea Brent oil for July delivery rose 0.41% to close at $107.58 after losing nearly 4%.
“This is a market that lives at the pace of international news,” summarizes Stephen Schork, analyst and author of the Schork Report.
First, prices have fallen sharply due to the lack of improvement in sanitary conditions in China and signs of slowing down since the start of the new wave of lockdowns at the Asian giant.
Chinese manufacturing activity hit its lowest level since February 2020.
The Management Procurement Index, a key indicator of manufacturing activity in the country, reached 47.4 points below the 50 threshold, which separates growth from contraction, as officials warned “decrease in production and demand” is increasing.
Then prices rose again as the European Union will announce a timeline for abandoning Russian oil this week due to the invasion of Ukraine launched by Moscow on February 24.
Pointing to the increasing demand for gasoline in the northern hemisphere in the summer as a factor that increases prices, Schork said, “The tone of the market is up.”
source: Noticias
