Brent oil, which closed February with a decline, started March on a positive note with Chinese data that surpassed expectations.
Oil prices, which rallied in the first half of 2022 with the effect of war, have been losing value since June 2022. The first day of March started well with oil prices, which had a weak month with the increase in interest rate expectations from the Fed in February, but the gains were erased later in the day.
Manufacturing PMI indicators in China, the world’s largest oil importing country, exceeded the growth threshold. Following the positive data showing that economic activity increased, Brent oil rose to $84.20 and crude oil rose to $77.70. Brent oil, which is watched as an indicator later in the day, gave back most of its gains and fell to $ 83.
Global markets focused on the fluctuating inflation in January and February. German inflation, announced today, increased by 0.8% in the last month. Tomorrow, Eurozone inflation will be announced. The continuation of the rise means that the ECB will extend the rate hike cycle. Expectations are for the 50 basis point rate hike to continue in March.
With the resurgence of inflation in the USA, the expected rate hike process from the Fed has also extended. Expectations are for a 75 basis point rate hike in the next three meetings.