Oil prices increase slightly, spurred by Chinese demand

Mounting concerns about weaker oil demand in the US as a result of additional interest rate hikes are offset by expectations of increasing demand in China.
Photo: Jason Redmond
Photo: Jason Redmond
BY MARKETWIRE, TRANSLATED BY CHRISTOFFER ØSTERGAARD

Oil prices climb marginally Tuesday morning, spurred by hopes that a China’s economic recovery will result in growing demand. 

A barrel of European benchmark crude Brent goes for USD 82.59 Tuesday morning against USD 82.43 Monday afternoon. At the same time, US counterpart West Texas Intermediate trades for USD 75.93 per barrel against USD 75.61 Monday afternoon. 

Mounting concerns about weaker oil demand in the US as a result of additional interest rate hikes are offset by expectations of increasing demand in China.

”China’s economic recovery will drive its demand for commodities higher with oil positioned to benefit the most,” a JPMorgan analyst remarks in a note to Reuters.

The market is awaiting the most recent figures on US oil stockpiles from the American Petroleum Institute, set to be released Tuesday, as well as new figures from the US Energy Information Administration on Wednesday, both indicators of demand development.

According to a poll carried out by Reuters, analysts estimate that crude stockpiles rose by 400,000 barrels last week, which would then mark the tenth consecutive week of increasing inventories.

Elsewhere in the commodities market, a troy ounce of gold goes for USD 1,813.86 Tuesday morning against USD 1,815.43 Monday afternoon.

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