Crude oil recovered on increasing demand

Crude oil recovered on increasing demand

Crude oil rose on Thursday Asian session above $102 per barrel, while Brent oil rose above $107 amid falling US oil inventories, and improving  of China economic growth.  USA and China are considered the two largest consumers of oil in the world.

·        Crude inventories declined in USA:

The  U.S. Energy Information Administration (EIA)  showed in  its weekly report on Wednesday that crude inventories fell 7.5 million barrels to 375 million barrels in the week ended  July 11th , the largest decline in stocks since January, and was  larger than analysts' expectations who predicted  a decline of 2.1 million barrels. The WTI price rose sharply higher after the report was released.

Another data released on Tuesday from the American Petroleum Institute  (API) showed that the U.S. inventories of crude oil fell 4.8 million barrels last week to 375.3 million barrels, compared to analysts forecasts of a decrease about 2.1 million barrels.

  • China economic growth upbeat forecasts :

Brent crude recovered from the lowest level in three months amid expectations of higher oil demand in China after data showed the improving of the economic growth in the second largest oil consumer in the world. In fact, China economic growth rose  during  the second quarter  of this year to 7.5 % slightly above expectations 7.4 %

As a result, the rebound of the oil prices remains vulnerable not only to the different economic factors, but also it can be affected by geopolitical factors like the tensions in Russia and the rising violence in the Middle East.

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