Oil prices rise marginally in early trade

2 Mar 2023 , 08:39 AM

Early Asian trade on Thursday saw a marginal increase in oil prices, extending gains from the previous two sessions. The world’s largest oil consumer, China, showed signs of a robust economic recovery, allaying concerns about an increase in U.S. crude stocks.

Although U.S. West Texas Intermediate (WTI) oil futures were up 7 cents, or 0.1%, at $77.76 a barrel, Brent crude futures increased 12 cents, or 0.1%, to $84.43 a barrel.

As statistics revealed that manufacturing activity in China climbed at the quickest rate in more than ten years in February, adding to the indications of an economic recovery following the relaxation of harsh COVID-19 controls, both contracts increased by roughly 1% in the previous session.

The market’s gains were however limited by a tenth straight week of crude stock building in the United States.

The Energy Information Administration stated that U.S. oil stockpiles increased by 1.2 million barrels in the week ending February 24 to 480.2 million barrels, their highest level since May 2021.

Nonetheless, record U.S. crude oil exports, which increased to 5.6 million barrels per day (bpd) last week, kept the build lower than in prior weeks.

Meanwhile, as the country increased purchases of Russian barrels that Western nations avoided, crude oil processed by Indian refiners hit record levels in January, according to preliminary government statistics released on Wednesday.

The third-largest oil importer and consumer in the world saw its refinery throughput increase to 5.39 million barrels per day in January, the highest level recorded by Reuters since 2009.

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