Crude oil prices were a mixed bag Thursday morning as fuel demand weakens amid the tepid reopening of China’s economy.
Brent futures for February 2023 dipped $1.13 cents to $82.13 a barrel at the time of writing, while U.S. West Texas Intermediate (WTI) crude futures fell $1.13, or 1.43%, to $77.83 a barrel. Last week, WTI reached session lows of $76.79.
And while United States Oil ETF (NYSE:USO) opened at $67.55 — down 1.24% — certain crude stocks bounced higher at the time of writing:
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- Energy Select Sector SPDR Fund (NYSE:XLE) opened at $85.70 and was trending upward by 0.79%.
- Exxon Mobil Corp (NYSE:XOM) opened at $108 on Thursday and continued to climb by 0.33%.
- Marathon Oil Corp (NYSE:MRO) opened at $26.33 and was up 0.13%.
- U.S. crude oil inventories fell less than expected, by about 1.3 million barrels, in the week ended Dec. 23, per API data.
- As of Dec. 28, WTI crude oil futures prices were up 67 cents from a week earlier and up $2.98 from a year earlier.
What’s Next: Oil is expected to stay volatile in 2023, and prices may hinge on China’s ability to weather its COVID-19 hardships. The country’s plan is to reopen borders and abandon quarantine by Jan. 8.
Markets will continue to generate support due to Russian President Vladimir Putin’s ban on exports of crude oil and oil products beginning Feb. 1.
The ban affects nations that abide by a Western price cap.
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