Oil edges higher on signs China's economic recovery on track

Oil edged higher as data showed China's economic recovery was on track following the end of Covid Zero, boosting the demand outlook.

West Texas Intermediate climbed above US$81 a barrel after closing 2 per cent lower on Monday, the biggest daily drop in four weeks. China's economy grew at a faster pace than expected in the first quarter, while apparent oil demand and crude processing jumped in March. Factory output lagged forecasts, however.

“The more robust consumption picture is providing greater conviction that the recovery in China may provide some cushion for oil demand amid global recession concerns,” said Yeap Jun Rong, a market strategist for IG Asia Pte.