Oil prices edge higher on falling US inventories, China data
2023.04.18 20:58
© Reuters. FILE PHOTO: A worker holds a nozzle to pump petrol into a vehicle at a fuel station in Mumbai, India, May 21, 2018. REUTERS/Francis Mascarenhas
By Laila Kearney
(Reuters) – Oil prices rose in early Asian trade on Wednesday as inventories were seen falling and on strong Chinese economic data, signalling strengthening fuel demand.
futures gained 7 cents to $84.84 a barrel at 0020 GMT. West Texas Intermediate U.S. crude was up 3 cents to $80.89 a barrel.
Keeping prices from moving higher were concerns that potential increases in U.S. interest rates could dampen growth in the top oil-consuming country.
The U.S. Federal Reserve likely has one more interest rate rise in store to fight inflation, Atlanta Fed President Raphael Bostic said.
Prices got a lift from an industry report showing that U.S. crude stocks fell by about 2.68 million barrels in the week ended April 14, according to market sources citing American Petroleum Institute figures on Tuesday.
Gasoline inventories fell by about 1.02 million barrels, while distillate stocks fell by about 1.9 million barrels, according to the sources, who spoke on condition of anonymity because they were not authorised to speak to media.
The official inventory report by the Energy Information Administration, the statistical arm of the U.S. Department of Energy, is due at 1430 GMT on Wednesday.
Meanwhile, the economy of top crude oil importer China grew by a faster-than-expected 4.5% in the first quarter, while the country’s oil refinery throughput rose to record levels in March, data showed.
