Crude Oil drops after rallying to a 7-year high

 Crude Oil drops after rallying to a 7-year high

Crude Oil drops after rallying to a 7-year high.

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Oil traders noted the still-positive demand outlook and regained appetite for risk after oil fell the most in a day this year.

After falling more than 2% on Monday, when United States equities plunged and then recovered, West Texas Intermediate prices rose almost 1% in early Asian trading. Amid rising interest rates and Russian troops massing on the Ukrainian border, the Federal Reserve prepares for volatile trading.

A global recovery in consumption from the pandemic led to a rally in crude last week, draining stockpiles and making crude prices reach the highest levels in seven years. Halliburton (Co.), which reported a surge in profits and a higher dividend on Monday, said it expects the industry environment to remain supportive.

Energy and commodities markets, including oil, could be adversely affected by a Russian invasion of Ukraine. There is a 50% chance of that happening within the next few weeks.

Crude stockpiles in the U.S. are set to fall another month in January after falling 15% in 2021. In addition to estimating oil inventories, the American Petroleum Institute will report key products such as gasoline estimates on Tuesday.

India, the third-largest oil importer and consumer, stockpiled crude oil in December as strong demand prospects led to a spike in imports.

Oil demand in India is recovering. Refiners are motivated to continue expanding their runs due to relatively healthy margins.

Increasing use of passenger cars and avoiding public transport are the main factors driving growth in gasoline demand. One issue is that oil prices are high, which might limit the growth of demand in the coming months.

Olumide Adesina

Olumide Adesina a France-born Nigerian, a Certified Investment Trader, with more than a decade of working expertise in Investment and Trading. He is also a reputable author and writer for CoinDesk and FxEmpire.

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