The comments added to indications of tighter oil supplies over recent days. Key timespreads for the global Brent benchmark have strengthened amid disruptions to vital Norwegian and Azeri flows. Meanwhile, the American Petroleum Institute reported US crude inventories dropped by 2.2 million barrels last week, according to people familiar with the data. Official government figures are due later Wednesday.
The oil market has been choppy this year as investors wait for sustained signs of a robust rebound from China following the end of the nation’s restrictive Covid Zero policy. Traders are also closely watching for the fallout from fresh sanctions on Russian refined products and its impact on trade flows.
“The oil market seems to shrug off the negative impact of the recent dollar rebound,” said Jens Pedersen, a senior analyst at Danske Bank. “It points to strong demand as recession fears subside and China’s reopening starts to feed through the market.”
- WTI for March delivery was 1.4% higher at $78.21 a barrel as of 9:33 a.m. London time
- Brent for April rose 1.1% to to $84.64
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