© Reuters. An oil pump in Texas, United States, in a photo from Reuters archive.
SINGAPORE (Reuters) – It stabilized on Thursday and maintained the gains it achieved on Wednesday after optimistic Chinese trade data and after US data showed a smaller-than-expected increase in crude inventories and a large drawdown of fuel inventories.
However, expectations that interest rate cuts in the United States may be postponed limited gains.
Crude futures fell four cents to 82.92 per barrel by 0432 GMT, and US West Texas Intermediate crude futures fell one cent to $79.12 per barrel, after data showed Chinese imports and exports growing beyond expectations.
“China’s trade balance data provides a positive indicator of the demand outlook for the oil market,” said Tina Ting, an independent analyst based in Auckland.
But she indicated that a state of risk aversion took over the financial markets, with stocks on Wall Street declining.
Chinese customs data showed on Thursday that the world’s largest crude importer recorded a 5.1 percent increase in its imports in the first two months of 2024 on an annual basis to about 10.74 million barrels per day, after refinery companies increased their purchases of crude to meet fuel sales during the Lunar New Year holiday.
Trade data for China, the second largest economy in the world, reflects the improvement in global trade and gives an encouraging signal to policymakers after a prolonged slowdown in the manufacturing sector that constituted a burden on the economy.
Brent and West Texas Intermediate crude oil rose about 1 percent on Wednesday after US crude inventories rose for the sixth week in a row.
(Prepared by Marwa Ghareeb for the Arabic Bulletin)
2024-03-07 05:55:00
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