Oil Price Rises Over Strong China Data, U.S. Output Caps Gains

Asian shares, Oil prices, Crude Oil Price, crude inventories

Oil prices rise on Wednesday after posting two days of declines at the start of the week.

Support came from a report that U.S. crude inventories are not rising as much as expected during the spring season now starting, implying healthy demand, and from strong China data.

Brent crude futures were at $64.74 per barrel, up by 10 cents.

U.S. West Texas Intermediate (WTI) crude futures were at $60.84 a barrel at 02:25 GMT, up by 13 cents.

U.S. crude inventories rose by 1.2 million barrels in the week to March 9, to 428 million barrels, the American Petroleum Institute said on Tuesday.

Support also came from China, where January-February domestic crude oil production fell 1.9% on the year to 30.37 million tonnes, equivalent to 3.77 million barrels per day, according to data from the National Statistical Bureau on Wednesday.

At the same time, crude oil throughput rose 7.3% to 93.4 million tonnes, implying a need for more imports.

China’s industrial output grew 7.2% in the first two months of the year compared with the same period last year, beating expectations of a 6.1% hike.

Weekly U.S. crude production figures will be published by the Energy Information Administration (EIA) later on Wednesday.

Estimates by the EIA show global supplies will exceed 100 million bpd for the first time in the second quarter of 2018.

The post Oil Price Rises Over Strong China Data, U.S. Output Caps Gains appeared first on Independent Newspapers Nigeria.

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Author: Our Correspondents