Recently, we have seen considerable volatility in the oil market. This is due to a number of factors that bring uncertainty. On the one hand, there are problems that are driving down the price of oil and, on the other hand, we are seeing economic recovery in some countries, which is driving up oil prices.*

At the end of the week, we see oil prices falling as traders weighed the prospect of further economic setbacks due to rising interest rates. However, oil values rose during the week as optimism emerged in the market regarding the recovery in Chinese demand.* High inflation is also contributing to the hawkish signals in the market.

 oil 2

The optimism related to the easing of restrictions in China and the subsequent economic recovery is clearly not enough. Brent and West Texas Intermediate crude oil futures fell only slightly, despite the fact that they should have risen this week.*

China saw its purchasing managers' index (PMI) rise in February, the fastest in more than a decade, after Beijing eased most of its measures against price hikes earlier this year. These results added to forecasts that China's economic recovery will lead to record oil demand in 2023.

* Past performance is no guarantee of future results.