The prices of Petroleum rose about 2% on Thursday, on expectations that global demand will strengthen with the reopening of the economy of the Chinathe main oil importer, and positive economic data from the USA.
Brent futures were up $1.35, or 1.6%, to settle at $87.47 a barrel, while US crude (WTI) rose 86 cents, or 1.1%, to settle at $81.01.
The US economy grew faster than expected in the fourth quarter, but a measure of domestic demand rose at its slowest pace in two and a half years, reflecting higher borrowing costs.
“Oil prices got an unexpected boost from a US economy that doesn’t want to crash,” said Edward Moya, senior market analyst at data and analytics firm OANDA.
US crude inventories increased by 533,000 barrels to 448.5 million barrels in the week ended Jan. 20, the US Energy Information Administration (EIA) said.
That fell short of forecasts for a 1 million barrel increase, although the IEA says oil inventories are at their highest level since June 2021.
China has eased stringent Covid-19 restrictions this month, with Beijing reopening its borders for the first time in three years.
“China’s reopening is supporting the demand outlook,” said UBS analyst Giovanni Staunovo.
Source: Moneytimes
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