Oil rises as increased supply dashes hopes of higher Chinese demand

Oil prices closed slightly higher on Wednesday, as signs of oversupply, including an increase in US crude inventories, dashed growing hopes of higher demand after a jump in manufacturing in China, the world’s largest importer of crude.

Brent crude futures rose 86 cents, or 1%, to settle at $84.31 a barrel.

US West Texas Intermediate crude also rose, at the settlement, by 64 cents, or 0.8%, to $77.69.

Government data showed that US crude stocks rose by 1.2 million barrels last week to 480.2 million barrels, the highest level since May 2021, exceeding analysts’ expectations for an increase of 457 thousand barrels.

China’s factory sector grew at the fastest pace in more than a decade in February, boosting hopes of a global economic recovery.

Rising global oil prices show how the strength of China’s recovery may boost global inflation by increasing energy demand.