Trade of Asia

Oil went up because of worries about supply after going down in the last two sessions.

Oil prices went up in Asia on Thursday morning because of worries about supply. It had been going down for the past two sessions.

Brent oil futures had risen 0.51 percent to $101.20 by 5:05 GMT (1:05 AM ET), while WTI crude oil futures had risen 0.56 percent to $99.11.Both benchmarks hit their lowest close since April 11 on Wednesday. Even though global supplies are tight, Tuesday’s drop was very big.

Stephen Innes, managing partner of SPI Asset Management, said, “Oil is going down, but we don’t know much more about how it is made or how much it is used.”

Still, commodity traders are becoming very risk-averse because of growing demand and still hawkish (U.S.) Fed policy worries. This is like an anvil hanging around the market’s neck. “

Oil prices have gone down along with those of other commodities like metals and palm oil. This is because central banks around the world have been raising interest rates, which has made people worry about a recession that could lower demand for commodities.

“It looks like the market is starting to price in that scenario,” Warren Patterson, who is in charge of commodity research at ING, told Reuters. He was talking about a recession.

On the supply side, investors are figuring out if the Caspian Pipeline Consortium (CPC), which has been told by a Russian court to stop working for 30 days, could stop delivering oil. As of Wednesday morning, CPC, which handles about 1% of the world’s oil supplies, was still sending out oil.

The American Petroleum Institute’s data on crude supply, which came out on Wednesday, showed a drop of 3.82 million barrels.

Investors are now waiting for the U.S. Energy Information Administration to release information about crude oil supplies later in the day.

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