Crude rises slightly as markets ignore China's inflation data

9 Nov 2023 , 09:57 AM

As markets ignored deflationary signs in China and searched for further information about the state of demand from the two largest oil consumers in the world, oil prices gradually increased on Thursday.

Brent crude futures had increased by 62 cents, or 0.8%, to $80.16 per barrel. At $75.94 a barrel, U.S. WTI crude futures were up 61 cents, or 0.8%.

The increases occur one day after both benchmarks dropped more than 2% to their lowest points since mid-July as worries about possible Middle East supply disruptions subsided and worries about demand from China and the United States increased.

China’s October PPI data decreased 2.6% year over year, while the country’s CPI dipped 0.2% year over year, according to statistics released on Thursday. This was mostly consistent with a Reuters poll that predicted PPI to increase by 2.7% and CPI to decrease by 0.1%.

Customs data from earlier this week revealed that while China’s imports of crude oil were strong in October, the country’s overall exports of products and services fell more quickly than anticipated.

Positively for oil demand, Pan Gongsheng, the governor of China’s central bank, stated that the nation is anticipated to meet its 5% annual growth goal this year.

Inventory statistics for the US could point to a decline in demand. Citing data from the American Petroleum Institute, sources said that for the week ending November 3, U.S. crude oil stockpiles rose by 11.9 million barrels. 

This would be the largest weekly construction since February, if confirmed. However, in order to improve its system, the U.S. Energy Information Administration (EIA) has postponed the publishing of weekly statistics on oil inventories until November 15.

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