Crude oil recovered on increasing
demand
07.17.2014
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.
