Brent Surpasses 88$

According to data published on OilPrice.com, Brent oil experienced growth in morning trading. It currently stands at $88.26, while a barrel of Texas WTI oil is trading at $81.67.

Traders are focusing on recovering demand in China after easing strict measures to suppress the coronavirus, the Mina agency reports.

The data from the USA also boosted the markets. Analytics showed that the growth of stocks last week was half as weak as expected, i.e., slightly more than 500,000 barrels.

Traders are also satisfied with the data on the growth of the US gross domestic product (GDP) in the fourth quarter of last year, at the analyzed rate of 2.9 percent.

However, growth slowed considerably at the end of the year, with an annual rate of one percent, almost half that of the previous quarter, as increased interest rates curbed demand.

Economists estimate that the world economy will grow by only about two percent this year, and the growth could be weaker, according to a survey conducted by Reuters.

The Organization of the Petroleum Exporting Countries (OPEC) separately announced that a barrel of its members’ oil basket cost $84.59 on Wednesday.

European Markets

Crude oil prices stabilized above $88 on Tuesday as traders balanced fears of a recession in the United States and expectations of a recovery in demand in China, the world’s largest importer.

On the London market, the barrel price was 88.31 dollars. There were no significant changes on the American market either, where a barrel traded at $81.7.

China recently lifted strict COVID-zero measures, which signaled a recovery in fuel demand; hence the traders were optimistic. However, opening China’s borders has sparked a new wave of infections, and data on US retail sales have fueled concern.