Oil prices rise over 1.5% on Chinese demand hopes

Oil prices rose over 1.5% in European trade on Thursday, resuming gains after a two-day decline on profit-taking, amid current hopes for improving demand in China. 

In addition, major producers are considering another output cut ahead of the OPEC + meeting next week. 

Global Prices

US crude rose 1.8%% to $81.69 a barrel, while Brent rose 1.7% to $87.66 a barrel. 

Global oil prices fell in the last two days on profit-taking off multi-week highs, with US crude moving off seven-month highs, while Brent moved off eight-month highs. 

Chinese Demand

The International Energy Agency said that lifting Covid 19 restrictions in China is expected to increase global demand to record highs this year.

Analysts already pointed to a 22% jump in road traffic in China so far this month compared to last year. 

OPEC +

Reuters reported that countries in OPEC + are discussing another supplies cut a week before their meeting in Vienna. 

US Inventories 

The Energy Information Administration reported a buildup of 500 thousand barrels in US crude stocks to 448.5 million barrels last week, while analysts expected a build of 1.2 million barrels.

Gasoline stocks rose 1.8 million barrels to 232 million barrels, while distillate stocks fell 0.5 million barrels to 115.3 million barrels.