By Ken Afor
On Thursday, oil prices increased slightly while investors disregarded deflationary signals from China and kept an eye out for more news about the demand levels of the two most significant oil buyers globally.
Brent crude futures increased by 62 cents (0.8%) to $80.16 per barrel at 0145 GMT, while U.S. West Texas Intermediate (WTI) crude futures climbed 61 cents (0.8%) to $75.94 per barrel.
On the heels of the two benchmarks falling more than 2% and hitting their lowest since mid-July due to a decrease in fears concerning Middle Eastern supply blockages and a heightened apprehension of US and Chinese demand, an uptick was observed.
On Thursday, China’s release of inflation data indicated a year-over-year decrease of 0.2% in October’s CPI, with PPI dropping by 2.6%. These results closely mirrored the Reuters poll prediction of a 0.1% decrease in CPI and a 2.7% decrease in PPI.
Data from customs revealed this week that China’s exports of goods and services dropped quicker than anticipated, despite the sizable imports of crude in October.
China’s central bank governor, Pan Gongsheng, expressed optimism that the country is expected to reach its goal of a 5% annual growth rate in oil demand this year.
In the US, an increase of 11.9 million barrels in crude oil inventories over the week to Nov. 3, as indicated by American Petroleum Institute figures, could potentially show a decrease in demand.
If true, this would be the greatest weekly buildup since February. However, due to a system upgrade, the U.S. Energy Information Administration (EIA) has postponed the publication of weekly oil inventory information until November 15.
Barclays reduced its 2024 Brent crude price estimation to $93 a barrel on Wednesday, citing an enduring U.S. oil supply and a surge in output from Venezuela after the easing of sanctions.
