SINGAPORE (Reuters) – Oil prices rose higher on Thursday after a drag in U.S. crude stocks for the fifth straight week and strong data from China show rising imports, despite coronavirus cases rising globally.
Brent crude oil futures gained 13 cents, or 0.2%, to $ 56.19 a barrel before 0744 GMT, while US West Texas Intermediate (WTI) increased 20 cents, or 0.4%, to $ 53.11 per barrel.
China’s total crude oil imports rose 7.3% in 2020 despite a coronavirus panic, with more people arriving in the second and third quarters as refineries expanded activity and low prices spurred collection stock, usage data showed.
“It ended a strong year with most commodities recording positive growth despite weaker economic growth,” analysts from ANZ Bank said in a note on Thursday.
“We expect strong import demand to remain strong in 2021, although growth rates are slightly lower than last year.”
U.S. crude oil stocks fell last week more than expected, while gasoline and distillate deposits rose as refineries raised output to an all-time high since August, the Energy Information Administration said Wednesday. [EIA/S]
US COVID-19 hefty relief package, which President Joe Biden is set to unveil Thursday, also backed prices.
“China’s data continues to perform, and the U.S. stimulus package appears to be on the way,” said Jeffrey Halley, OANDA’s senior market analyst.
“Both should ensure that enough corporate customers show up for any price reductions.”
However, concerns about viral issues are high and the impact on oil demand is reducing price gains.
China, the world’s second-largest oil consumer, reported the biggest daily jump in new COVID-19 cases in more than 10 months when infections in the northeastern Heilongjiang region nearly three so much, reflecting the growing danger ahead of a major national holiday.
Governments across Europe announced tighter and longer-term coronavirus seizures on Wednesday because of a rapidly spreading COVID outbreak that was first detected in Britain and because vaccines are not expected to occur. help a lot for another two or three months.
Oil producers face an unprecedented challenge to balance supply and demand as factors including speed and response to COVID-19 vaccines cloud the scene, an official with the International Energy Agency said. national (IEA).
Reporting by Jessica Jaganathan; edited by Richard Pullin and Himani Sarkar