Oil rises as traders focus on U.S. gasoline and China demand
BNN Bloomberg
Oil rose as tight US product markets and the prospect of higher demand in China, the world’s top importer, add urgency to the hunt for barrels.
West Texas Intermediate traded near US$114 a barrel, recovering from Tuesday’s drop. The American Petroleum Institute reported that gasoline inventories sank by more than 5 million barrels last week, according to people familiar with the data, which also showed lower crude holdings. Official figures come later Wednesday.
In Asia, traders are on the lookout for signals that China may be poised to ease curbs imposed on Shanghai, potentially reviving energy consumption. Chinese officials had locked down the financial capital and other cities in an effort to eliminate coronavirus cases. The commercial hub again reported no new infections outside of quarantine, even as other locales reported rising cases.
Oil is on course for a sixth monthly increase -- potentially the best run in a decade -- as rising demand and disruptions from the war in Ukraine combine to support gains. The surge is contributing to higher inflation, and Federal Reserve Chair Jerome Powell vowed Tuesday that the US central bank would keep raising interest rates until there is clear evidence price gains are slowing.
