Oil evens following earlier drop

Oil evens following earlier drop

Brent crude futures climbed 14 cents, or 0.2%, to $82.84 a barrel by 1055 GMT, and U.S. crude futures counted 1 cent to $77.29.

Gains in the dollar mulled on prices. A more robust dollar can cut oil demand because it makes the commodity more pricey for those holding other currencies.

On Wednesday, Federal Reserve Chair Jerome Powell stated that the U.S. central bank would increase interest rates further next year, even as the economy drops towards a potential recession.

Chinese economic data for November was much inferior than anticipated, further dimming the demand perspective, said CMC Markets analyst Tina Teng.

The world’s second-largest economy lost momentum as factory production stalled and retail sales dropped, missing predictions and clocking their worst readings in six months as coronavirus cases rushed.


Oil rebound


Also weighing on oil prices, Canada’s TC Energy (NYSE: TRP) Corp stated it is restarting operations in a section of its Keystone pipeline, a week after a leak of more than 14,000 barrels in rural Kansas started the whole pipe’s shutdown.

Loaning some support were projections from the International Energy Agency, which anticipates Chinese oil demand to rebound next year after a contraction of 400,000 barrels per day.

The Energy Information Administration said that U.S. crude oil stockpiles increased by more than 10 million barrels last week, the most after March 2021. [EIA/S]

On Wednesday, Goldman Sachs (NYSE: GS) lowered its oil price predictions for 2023, quoting a projected market surplus early next year as supply from Russia remains strong and China demand ramps up.