Oil is rising, supported by a lack of US inventories and optimism in Chinese demand

© Reuters. Oil is rising, supported by a lack of US inventories and optimism in Chinese demand

Arabictrader.com – Prices rose on Wednesday after industry data showed an unexpected decline in US crude stocks last week, and China, the second largest oil consumer in the world, recorded its lowest daily rise in cases of coronavirus infection, which boosted hopes for a recovery in demand, Crude futures rose 0.7 percent to $ 56.34 a barrel, adding to the slight gains on Wednesday, and US West Texas Intermediate crude futures rose 0.59 percent to $ 52.81 a barrel, reflecting Tuesday’s loss.

Economic analysts believe that West Texas Intermediate crude is slightly stronger on the back of a larger than expected withdrawal in US crude stocks reported by the American Petroleum Institute, which is offset by construction in gasoline and distillates, and the American Petroleum Institute (API) reported that crude oil stocks in the United States, The world’s largest oil consumer, fell 5.3 million barrels in the week ending January 22, compared to analysts’ expectations in a Reuters poll for a 430,000-barrel increase, however, data showed gasoline inventories rose 3.1 million barrels, which is much more than expected.

The American Petroleum Institute data showed that stocks of distilled fuel, which include diesel and heating oil, rose 1.4 million barrels, compared to expectations of withdrawing 361 thousand barrels, and refining operations decreased by 76 thousand barrels per day. Analysts said that after jumping to multi-month highs at the start of the year, it appears that the rise in oil prices has run out and has restricted its range in recent weeks. Economic analysts added in a note: Market participants are now in a wait-and-see mode, and they want to know how closures develop in the coming weeks and months, and how successful countries are in rolling out coronavirus vaccines.

However, prices were supported by easing concerns about a sharp drop in travel during the Lunar New Year in China, the world’s largest oil importer, as the number of Coronavirus cases appears to be declining, and official data showed 75 new confirmed cases of the Coronavirus on Wednesday, which is The lowest daily high since Jan.11, and typically, hundreds of millions of Chinese travel during the Lunar New Year holiday, which begins on February 11. However, government officials urged people not to travel to help contain the recent increase in coronavirus infections.

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