At the start of Monday’s trading session, crude oil prices saw an initial rise, but throughout the course of the day, they retreated from their earlier gains. February crude futures declined by $0.46, or around 0.5%, to settle at $73.50 per barrel. This came after reaching an intraday peak of nearly $75 per barrel, marking the highest level in almost three months. The decline in oil prices interrupted a sequence of five consecutive days of gains.
The initial rise in oil prices was supported by a dip in the U.S. dollar's value, following a report from the Washington Post indicating the incoming President, Donald Trump, might soften his previously aggressive tariff proposals. While Trump had advocated for broad tariffs of up to 10% or 20% on all imports into the U.S., the report stated his team was considering more targeted tariffs focused only on "critical imports" from each country.
As the session progressed, the appetite for buying diminished, particularly after Trump labeled the report as "fake news," leading to a recovery in the dollar’s value. Nonetheless, crude price declines were limited after Saudi Arabia, the world's leading oil exporter, increased prices for its Asian markets for the first time in three months.
In addition, China is anticipated to boost fuel demand due to its plans for further economic stimulus, given its status as the largest crude oil importer globally. Notably, reports have surfaced that the People's Bank of China intends to issue its largest-ever tranche of offshore yuan-denominated bonds in Hong Kong.
The material has been provided by InstaForex Company -
www.instaforex.com
