Oil prices climb despite weak growth figures out of China

The price increase is limited, however, as China posts the weakest economic growth figures in nearly 50 years.
Photo: Jan Unger
Photo: Jan Unger
BY MARKETWIRE, TRANSLATED BY CHRISTOFFER ØSTERGAARD

Oil prices rise slightly Tuesday, still hovering at a high level amid expectations that oil demand will rebound following China’s reopening. The increase is limited, however, as China posts the weakest economic growth figures in nearly 50 years.

A barrel of European benchmark crude Brent goes for USD 84.67 Tuesday morning against USD 84.29 Monday afternoon. Meanwhile, US counterpart West Texas Intermediate trades at USD 79.29 per barrel against USD 78.89 Monday afternoon.

Despite the weak economic data out of China, analysts’ expectations remain high owing to a reversal in consumption after the nation’s lifting of tough tough Covid-19 restrictions.

Brent has risen almost 10% over the course of the past 10 days on expectations tied to China’s reopening. On the other hand, uncertainties surrounding the global economy still linger, writes ANZ analyst in a note to Reuters.

Even though the most recent development has spurred projections as far as China’s growth, chief economist at ING bank Iris Penge warns that uncertainties, not least concerning potential recessions in the US and Europe, must be taken into account.

An increase in Russia’s crude supply has already made an impact on the market, with seaborne exports rising to 3.8 million barrels per day last week, the highest level since April, notes ANZ, according to Reuters.

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