Oil prices rose on Wednesday, with factory production and retail sales in China exceeding expectations, a day after the International Energy Agency raised its forecast for oil demand growth this year.
By 0427 GMT, Brent crude futures rose 20 cents, or 0.2 percent, to $82.67 per barrel. West Texas Intermediate crude also rose 15 cents, or 0.2 percent, to $78.28.
Economic activity rebounded in China in October, with industrial production growing at a faster pace and retail sales growth exceeding expectations, a positive sign for the world’s second-largest economy.
The International Energy Agency joined the Organization of the Petroleum Exporting Countries and its allies (OPEC+) in raising oil demand growth expectations for this year, despite expectations of a slowdown in economic growth in many major countries.
“The (International Energy Agency) believes that demand for oil remains strong. It raised its forecasts due to better-than-expected consumption in China,” ANZ Research said in a note on Wednesday.
Expectations that the Federal Reserve will cut interest rates next spring led to the dollar falling to its lowest level in two and a half months against a basket of major currencies. A falling dollar could boost demand for oil by making crude cheaper for buyers using other currencies.
The US Energy Information Administration will issue its first report on oil inventories within two weeks, on Wednesday. It did not release its report last week due to a systems update.
2023-11-15 05:04:28
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