Oil prices rise in early trade

19 Apr 2023 , 09:57 AM

Early on in Wednesday’s Asian trading, oil prices increased as dropping U.S. crude stocks and positive Chinese growth statistics suggested that fuel demand was on the rise.

Brent crude futures increased 7 cents to $84.84 a barrel. To reach $80.89 per barrel, West Texas Intermediate U.S. crude gained 3 cents.

Fears that prospective hikes in U.S. interest rates could stifle growth in the top oil consumer nation prevented prices from rising.

According to Raphael Bostic, president of the Atlanta Fed, the U.S. Federal Reserve is most likely planning one more increase in interest rates to combat inflation.

The American Petroleum Institute data on Tuesday, cited by market sources, showed that U.S. crude stocks decreased by around 2.68 million barrels in the week ending April 14. This news helped to boost prices.

The news reports said that distillate stocks declined by around 1.9 million barrels and petrol inventories fell by about 1.02 million barrels.

On Wednesday at 14:30 GMT, the Energy Information Administration, the U.S. Department of Energy’s statistical division, is expected to release its official inventory report.

In the meantime, reports showed that China, the world’s largest crude oil importer, had its economy expand by a faster-than-anticipated 4.5% in the first quarter and that throughput at its oil refineries reached new highs in March.

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