Oil Up over Optimism of Demand Rebound and Tight Supply
2022.06.16 06:56
By Zhang Mengying
Investing.com – Oil was up on Thursday morning in Asia, supported by peak summer demand and tight global supply, despite that U.S. interest rate hike spurring concerns over less fuel demand.
Brent oil futures rose 0.65% to $119.28 by 11:43 PM ET (3:43 AM GMT) and crude oil WTI futures jumped 0.91% to $116.36.
Wednesday’s U.S. crude supply data from the U.S. Energy Information Administration showed a build of 1.956 million barrels for the week ended June 10.
Investors now are assessing tight supplies and robust demand as the West imposed sanctions on Russian oil while China’s oil demand is expected to rebound with COVID-19 curbs easing.
“A rebound in China demand sentiment and expected seasonal ramp-up in OECD oil demand into August leaves price risk to the upside through 3Q 2022,” the National Australia Bank (OTC:NABZY) head of commodities research Baden Moore.
Crude supply data from the American Petroleum Institute released the day before, showed a build of 0.736 million barrels.
