2024-01-25 01:48:13
Oil prices rose on Thursday after data showed US crude inventories fell more than expected last week, while the Chinese central bank’s reduction in bank reserve ratios boosted hopes for further measures recovery and economic recovery.
The March contract for Brent oil was up 20 cents, 0.3%, at $80.24 a barrel by 0128 GMT. U.S. West Texas Intermediate crude rose 22 cents, or 0.3%, to $75.31 a barrel.
“A significant decline in U.S. oil inventories and expectations of China’s economic recovery and further stimulus measures supported oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
“Tensions in the Middle East were also behind the purchases,” he added.
U.S. crude inventories fell by 9.2 million barrels last week, according to the Energy Information Administration, more than quadruple the 2.2 million barrel drop analysts predicted in a Reuters poll.
This drop is explained by a sharp drop in crude imports into the United States, as winter weather conditions led to the closure of refineries and prevented motorists from hitting the road.
U.S. crude production fell from a record 13.3 million barrels per day (bpd) two weeks ago to a five-month low of 12.3 bpd last week, following freezing of oil wells in the Arctic.
Oil prices were also supported by hopes of China’s economic recovery.
China’s central bank announced a sharp reduction in bank reserves on Wednesday, in a move that will inject around $140 billion in liquidity into the banking system and send a strong signal of support to a fragile economy and plummeting stock markets.
China also said on Wednesday it was expanding banks’ use of commercial real estate loans in its latest effort to ease the liquidity crunch facing struggling real estate companies.
Meanwhile, geopolitical tensions in the Middle East remained the center of attention.
Maersk said nearby explosions forced two ships operated by its U.S. subsidiary and carrying U.S. military supplies to turn around as they crossed the Bab al-Mandab Strait heading north, accompanied by the U.S. Navy .
The US military carried out new strikes in Yemen early Wednesday, destroying two Houthi anti-ship missiles that were aimed at the Red Sea and preparing to be launched, according to the US military. (Reporting by Yuka Obayashi; Editing by Lincoln Feast.)
1706151814
#Oil #prices #rise #sharp #decline #U.S #crude #inventories #China #recovery #hopes #January #a.m