Oil rebounds slightly today

1 Mayıs 2024

Today’s market analysis on behalf of Samer Hasn Market Analyst and
part of the Research Team at XS.com

Crude oil was able to achieve some slight gains today by 0.2% and 2.5% for both Brent and
West Texas Intermediate, respectively, at 9:10 a.m. GMT.
The oil market gains came with the fastest growth in manufacturing activities in China in
more than a year and the faster-than-expected growth of the Eurozone economy in the first
quarter.
Today’s dawn, we witnessed the reading of the Caixin/S&P Global manufacturing PMI for
April, which was better than expected and at the highest level since March of last year.
The PMI report gives more reassuring signals overall for oil markets that are more focused
on the economic reality in China than any other factors, including programed or geopolitical
supply constraints that appear to be fading, at least for now.
The report indicated further improvement in the demand and supply sides in the
manufacturing sector, with more influx of new business, including those from abroad, which
grew at the fastest pace in three and a half years. This growth in demand has been matched
by factories, optimistic about economic conditions, expanding purchasing activities while
hiring remains cautious.
Eurozone data was also bright today and reinforce the sentiment in the oil market, which is
looking for signs of a recovery in global demand in light of high interest rates, which may
remain so for a much longer period than expected.