Oil prices were mixed after China posted its weakest economic growth in nearly half a century, meanwhile a U-turn in COVID policy still supported hopes of recovery in the country’s fuel demand this year.
There was no settlement on Monday due to the U.S. holiday for Martin Luther King Day.
Meanwhile, China’s gross domestic product expanded 3% in 2022, much lower than what was estimated. This was the second-worst performance since 1976. This is against the backdrop of the last quarter being pummeled by strict COVID restrictions and a property market slump.
The poor economic data still beat analysts’ earlier forecasts as Beijing’s roll back of its zero-COVID policy in December shored up consumption.
Data also showed that China’s oil refinery output in 2022 marked its first annual decline since 2001. It fell 3.4% from a year earlier. Meanwhile, Daily December oil throughput rose to the second-highest level of 2022.
Adding to the list of bearish data, two-thirds of private and public sector economists polled expected a global recession this year, according to a survey released at the annual Davos summit.
The dollar edged up, weighing on demand for oil and gold, making the two commodities more expensive for overseas buyers.
Gold prices eased back toward the $1,900 support level, dragged by a rebounding dollar.
Losses were capped by expectations of a smaller increase in interest rates.
Markets are expecting the Federal Reserve to announce a smaller 25-basis-point hike in February.
Lower interest rates decrease returns on interest-bearing assets like government bonds and bolster demand for gold.
On investors’ radar was also data from top gold consumer China that could potentially drag demand.
