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Commodities
18 May 2022
Oil prices Edged Up on China Demand Recuperation Assumption
The Index Today
On Wednesday, oil prices edged up on expectations that easing COVID-19 restrictions in China will push up demand and as industry data showed drawdowns in U.S crude inventories.
Brent crude was up 23 cents, or 0.2%, at $112.16 a barrel at 0633 GMT, while U.S. West Texas Intermediate (WTI) crude climbed 71 cents, or 0.6%, to $113.11 a barrel, reversing some of the previous session's losses.
Stephen Innes, managing partner at SPI Asset Management, wrote in a note, "Less awful news on China offers a nip in the tail in the form of much higher oil demand and prices, which is positive for producers, but harmful for consumer sentiment."
U.S. government data is due on Wednesday.
OANDA senior analyst Jeffrey Halley said, "Soaring diesel and distillate prices, along with tight crude stocks is supporting WTI and I believe that situation will limit the downside from here in oil prices over the next few sessions."
©Photo: Boston Globe
