Oil prices are showing underlying strength to start the new year but are still fighting the Federal Reserve headwinds and the renewed strength in the US dollar, states Phil Flynn of PRICE Futures Group.
Oil prices seemed unphased by the New Year greeting by the International Monetary Fund (IMF) which is predicting that a third of the global economy will be in recession in 2023. Happy New Year from the IMF. Perhaps oil is ignoring it because of signs that demand in China is rising despite reports of Covid cases spreading throughout the country.
Bloomberg News reports that “nearly a dozen major Chinese cities are reporting a recovery in subway use, a sign that an ‘exit wave’ of Covid infections may have peaked in some urban areas. More and more people are taking the subway in 11 of China’s biggest cities, with Shanghai, Guangzhou, Shenzhen, and Nanjing among the latest metropolises to report a…
