On China's promise of economic help and a tighter supply, oil prices increase in early trade

19 Jul 2023 , 11:48 AM

On Wednesday, oil prices increased globally as a result of China’s promise to promote economic growth, a reduction in Russian supplies, and lower weekly U.S. crude oil stockpiles.

Brent futures were up 9 cents, or 0.1%, to $79.72 per barrel, while WTI crude oil prices in the United States were unchanged at $75.75 per barrel.

Tuesday, China’s top economic planner promised that the country would implement measures to ‘restore and expand’ consumption in the second-largest economy in the world as long as consumer spending power remained low.

According to the energy ministry, Russia will lower its oil exports by 2.1 million tons in the third quarter to match the agreed-upon daily export cuts of 500,000 barrels in August.

According to market sources quoting data released on Tuesday by the American Petroleum Institute, an industry group, U.S. crude oil, gasoline, and distillate stockpiles all decreased last week, with crude stocks down by around 800,000 barrels.

The U.S. Energy Information Administration’s weekly inventory report, which is due out later on Wednesday, is anticipated by the market to indicate additional reductions in U.S. crude oil stocks, supporting prices even further.

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