# Oil steadies after dipping on China outlook; investors await Fed clues Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-06 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil market tight and vulnerable as top executives debate Meta Description: Stay updated on oil market trends and supply tightness as top executives discuss market stability and potential disruptions at the CERAWeek energy conference in URL: https://financedigest.com/oil-steadies-after-dipping-on-china-outlook-investors-await-fed-clueshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-06t015439z2lynxmpej25018rtroptp4global-oil-1736814371474-compressed.jpg) By Arathy Somasekhar HOUSTON (Reuters) -Oil prices were steady on Monday as top oil executives debated supply tightness at an oil conference in Houston. Oil market and logistics are tight and vulnerable to any unexpected supply disruption, as Russian oil is still getting to the market, but at different costs, oil major Chevron Corp Chief Executive Mike Wirth said at the CERAWeek energy conference. Trading [company Gunvor’s CEO](https://www.financedigest.com/in-listening-mode-new-bayer-ceo-keeps-open-mind-on-company-split.html "In listening mode, new Bayer CEO keeps ‘open mind’ on company split") Torbjorn Tornqvist said crude prices may rise in the second half of the year as Chinese demand returns to the market, adding that the oil market has stabilised. Brent crude futures were trading up 1 cent, or 0.1%, at $85.84 a barrel by 12:00 p.m. ET (1700 GMT). U.S. West Texas Intermediate (WTI) crude futures were up 32 cents, or 0.4%, at $80.01. Both benchmarks had decline by more than $1 per barrel earlier in the session as China set a [lower than expected target for economic growth this year](https://www.financedigest.com/spains-inflation-to-be-lower-this-year-than-in-2022-minister.html "Spain’s inflation to be lower this year than in 2022 -minister") at about 5%. [China’s closely watched growth outlook](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook"), announced on Sunday, was lower than last year’s 5.5% target for gross domestic product (GDP) growth. GDP [grew last year](https://www.financedigest.com/glastons-interim-report-1-january-31-march-2018-orders-received-grew-23-comparable-operating-profit-at-previous-years-level.html "Glaston’s Interim Report 1 January – 31 March 2018: Orders received grew 23%, comparable operating profit at previous year’s level") by only 3%. Policy sources had told Reuters the [target could be set](https://www.financedigest.com/eu-sets-recycling-reuse-targets-to-cut-packaging-waste.html "EU sets recycling, reuse targets to cut packaging waste") as high as 6% for 2023. Premier Li Keqiang on Sunday said the foundation for stable growth in China needed to be consolidated, that insufficient demand remained a pronounced problem and the [expectations of private investors](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles") and businesses were unstable. At the same time, oil prices are likely to be affected by increases to interest rates across the world as global central [banks tighten policy over fears of rising](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") inflation. [Investors awaited](https://www.financedigest.com/dollar-catches-breath-while-investors-await-midterms-cryptos-skittish.html "Dollar catches breath while investors await midterms; cryptos skittish") U.S. Federal Reserve Chair Jerome [Powell’s testimony](https://www.financedigest.com/wall-st-flutters-treasury-yields-ease-as-powell-resumes-testimony.html "Wall St flutters, Treasury yields ease as Powell resumes testimony") this week. Traders have started [factoring in rate hikes but are hoping for smaller increases than last year](https://www.financedigest.com/3-factors-to-plan-for-in-2017-a-year-like-none-other.html "3 Factors to Plan for in 2017, A Year Like None Other"). The Fed’s Powell will testify to Congress on Tuesday and Wednesday, when he is likely to be quizzed on whether larger increases are [needed in the world’s biggest oil-consuming country](https://www.financedigest.com/5-countries-you-need-to-have-an-offshore-account-in.html "5 Countries You Need To Have An Offshore Account In"). Future U.S. rate hikes are also likely to depend on what the February [payrolls report reveals](https://www.financedigest.com/2017-global-payroll-complexity-index-reveals.html "2017 Global Payroll Complexity Index Reveals ") on Friday, followed by the February inflation report next week. Over the weekend, [European Central Bank President Christine Lagarde said it was “very likely” the bank would raise interest rates this month to keep a lid on inflation](https://www.financedigest.com/european-shares-set-for-weekly-gain-on-u-s-inflation-outlook.html "European shares set for weekly gain on U.S. inflation outlook"). (Reporting by Arathy Somasekhar in Houston, [Additional reporting by Noah Browning](https://www.financedigest.com/tailify-bolsters-leadership-team-with-addition-of-julia-burton-brown-as-commercial-director.html "Tailify bolsters leadership team with addition of Julia Burton Brown as Commercial Director") in London, Mohi Narayan in New Delhi and Sudarshan Varadhan in SingaporeEditing by David Goodman and Marguerita Choy) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---