Our website publishes news, press releases, opinion and advertorials on various financial organizations, products and services which are commissioned from various Companies, Organizations, PR agencies, Bloggers etc. These commissioned articles are commercial in nature. This is not to be considered as financial advice and should be considered only for information purposes. It does not reflect the views or opinion of our website and is not to be considered an endorsement or a recommendation. We cannot guarantee the accuracy or applicability of any information provided with respect to your individual or personal circumstances. Please seek Professional advice from a qualified professional before making any financial decisions. We link to various third-party websites, affiliate sales networks, and to our advertising partners websites. When you view or click on certain links available on our articles, our partners may compensate us for displaying the content to you or make a purchase or fill a form. This will not incur any additional charges to you. To make things simpler for you to identity or distinguish advertised or sponsored articles or links, you may consider all articles or links hosted on our site as a commercial article placement. We will not be responsible for any loss you may suffer as a result of any omission or inaccuracy on the website.

Oil prices rise on U.S. drawdown, Chinese fears weigh

by Staff GBAF Publications Ltd
0 comment

By Shadia Nasralla and Rowena Edwards

LONDON (Reuters) -Oil prices rose by more than 2% on Wednesday after data suggested a larger than expected draw in U.S. crude stockpiles, but gains were capped by growing concerns over demand in China and a snow storm that is expected to hit U.S. travel.

Brent crude futures were up by $1.77, or 2.2%, at $81.76 a barrel by 1306 GMT. U.S. West Texas Intermediate (WTI) crude futures gained $1.68, or 2.2%, to $77.91.

U.S. crude inventories fell by about 3.1 million barrels in the week to Dec. 16, said market sources, citing data from the American Petroleum Institute. Nine analysts polled by Reuters had forecast a drop of 1.7 million barrels. Official government data is due at 1530 GMT. [EIA/S]

Prices were also boosted by comments from Saudi Arabia’s energy minister, who said on Tuesday that the heavily criticised move by OPEC+ to cut oil output turned out to be the right decision.

The comments suggest that OPEC+ may continue to keep supply tight, said CMC Markets analyst Tina Teng.

Potentially curtailing oil demand, huge parts of the United States are forecast to face heavy snow that is likely to cause flight delays and impassable roads during one of the busiest travel periods of the year.

Worries about surging COVID-19 cases in China as the country begins dismantling its zero-COVID policy kept oil prices from moving higher.

However, China’s crude oil imports from Russia in November rose 17% year on year as Chinese refiners rushed to secure more cargoes ahead of a price cap imposed by the Group of Seven nations and an EU embargo from Dec. 5.

Overall, Russian oil exports fell by 11% month on month for Dec. 1-20 after the European Union’s embargo on Russian oil came into force, the Kommersant daily reported.

(Reporting by Shadia Nasralla, Dmitry Zhdannikov and Rowena Edwards;Additional reporting by Isabel Kua in SingaporeEditing by David Goodman)