By Ahmed Mukhtar Naqshbandi
ISLAMABAD/ANKARA: Oil prices rose over expectations of a strong rebound in demand from China, the global largest crude importer, while an expected rise in United States crude oil stockpiles limited further price upticks.
According to the APP, the International benchmark Brent crude traded at 86.58 dollars per barrel. A 0.52 percent increase from the closing price of 86.13 dollars a barrel in the previous trading session.
American benchmark West Texas Intermediate (WTI) traded at 80.42 dollars per barrel simultaneously, a 0.36 percent gain after the previous session closed at $80.13 a barrel.
Although long-term lockdowns and strict restrictions have restrained China’s economic growth since the beginning of the covid-19 pandemic, experts are hopeful for an economic rebound the life is gradually normalizing in the global second-largest oil-consuming country.
Positive sentiment also fuels hopes for solid demand. Still, concerns over renewed restrictions remain as China’s Lunar New Year holiday, which started on Saturday, has expected to bring together millions of people.
Limiting further price rises, the American Petroleum Institute (API) reported an estimate of a surge of almost 3.4 million barrels in United States crude oil stocks late on Tuesday, in contrast to the market consensus of a 1.6 million barrels increase. A higher-than-expected stockpile rise signals a drop in crude demand, weighing prices down.
Official oil stock data
The US Energy Information Administration (EIA) could release official oil stock data later on Wednesday, and if the estimated build in stock levels is confirmed, prices are expected to fall further. — APP
