BEIJING: Oil prices moved upwards on Thursday as investors disregarded deflationary numbers from China and looked for more information on the demand from the two largest oil consumers in the world.
Brent crude futures rose 62 cents, or 0.8%, to $80.16 per barrel by 0145 GMT. U.S. WTI crude futures increased 61 cents, or 0.8%, to $75.94 a barrel.
The increase comes one day after both benchmarks dropped more than 2% to their lowest since mid-July, as worries over potential supply disruptions in the Middle East eased and concerns over U.S. and Chinese demand increased.
Data released by China on Thursday showed that October CPI decreased 0.2% year-on-year, while PPI data dropped 2.6% year-on-year. This was in line with a Reuters survey that predicted CPI would decline 0.1% and PPI 2.7%.
Earlier this week, customs data showed that China’s total exports of goods and services contracted faster than expected, although the country’s crude imports in October were strong.
On the positive side for oil demand, China’s central bank governor, Pan Gongsheng, said the country is expected to reach its annual growth target of 5% for this year.
For the United States, inventory data may point to a decline in demand. Sources said that U.S. crude oil inventories increased by 11.9 million barrels over the week to November 3, based on figures from the American Petroleum Institute. [API/S]
If confirmed, this would be the largest weekly build since February. The United States Energy Information Administration, however, has postponed the release of weekly oil inventory data until November 15 due to a system upgrade.
Barclays cut its 2024 Brent crude price forecast by $4 to $93 per barrel on Wednesday, citing resilient U.S. oil supply and higher output from Venezuela after the removal of sanctions on the Latin American producer.