Oil Prices Score Two-Week Highs

Brent crude futures increased $1.14, or 1.4%, to $85.60 a barrel by 1224 GMT.

U.S. West Texas Intermediate (WTI) crude went higher 47 cents, or 0.6%, at $80.33. There was no compromise on Monday due to the U.S. general holiday for Martin Luther King Day.

China’s gross domestic product grew by 3% in 2022, skipping the official around 5.5% target and drawing the second-worst performance after 1976.

However, the data still surpassed analysts’ predictions following Bejing’s return to its zero-corona policy in December.

According to OANDA market analyst Craig Erlam, a more superficial economic hit in China from the coronavirus transition has driven the most delinquent rebound in crude prices.

Data published on Tuesday revealed China’s oil refinery production in 2022 had dropped 3.4% from a year earlier for its first yearly drop after 2001. Nevertheless, daily December oil throughput advanced to the second-highest level of 2022.

Higher Imports

According to PVM analyst Tamas Varga, the country’s crude oil imports were higher by 4% in December. Moreover, we should see significant demand growth for transportation fuel when the Lunar New Year starts on Sunday.

He counted that reports from the Organization of the Petroleum Exporting Countries (OPEC) at 1315 GMT and the International Energy Agency (IEA) on Wednesday would bring more clarity on the strength of oil demand while recession worries endanger.

In a poll published at the yearly World Economic Forum in Davos, two-thirds of private and public sector economists surveyed predicted a global recession this year, with about 18% believing it extremely likely.

A poll of chief executives’ views by PwC was the most negative since the survey was established a decade ago.

A slight dollar intensifying from seven-month lows also pressured oil prices. Because of this, dollar-priced oil is more costly for buyers holding other currencies.