Oil prices hold gains on upbeat China trade data By Reuters

By Florence Tan

SINGAPORE (Reuters) -Oil costs held regular on Thursday, holding onto in a single day positive aspects after upbeat Chinese language commerce knowledge and after U.S. knowledge confirmed a smaller-than-expected rise in crude inventories and huge attracts in gasoline shares.

Nevertheless, expectations that U.S. rate of interest cuts could possibly be delayed capped positive aspects.

futures slipped 8 cents to $82.88 a barrel by 0736 GMT, whereas U.S. West Texas Intermediate crude futures inched down 7 cents to $79.06 a barrel regardless of China’s import and export progress beating estimates.

“China’s commerce steadiness knowledge is a optimistic signal for the oil market’s demand outlook,” Auckland-based impartial analyst Tina Teng mentioned.

Nevertheless, she added that risk-off sentiment dominated monetary markets as shares are retreating on Wall Road.

The world’s prime crude importer posted a 5.1% rise in imports within the first two months of 2024 from a yr earlier to about 10.74 million barrels per day (bpd), customs knowledge confirmed on Thursday, as refiners ramped up crude purchases to fulfill gasoline gross sales in the course of the Lunar New 12 months vacation.

China’s January-February refined merchandise exports dropped 30.6% on yr to eight.82 million tons, lowering provides for world markets.

Upbeat commerce knowledge from China, the world’s second-biggest financial system, suggests world commerce is popping a nook in an encouraging sign for policymakers as they attempt to shore up a stuttering financial restoration.

Brent and WTI edged up about 1% on Wednesday after crude inventories rose for a sixth week in a row, constructing by 1.4 million barrels, about two-thirds of the two.1 million-barrel rise analysts had forecast in a Reuters ballot.

Gasoline and distillate shares fell greater than anticipated, the EIA knowledge additionally confirmed.

A robust U.S. greenback will preserve the established order within the close to time period, as markets brace for a danger the U.S. Federal Reserve’s first rate of interest minimize will get delayed to the second half of this yr, in keeping with a Reuters ballot of international change strategists.

Fed Chair Jerome Powell mentioned continued progress on inflation “will not be assured”, although the U.S. central financial institution nonetheless expects to cut back its benchmark rate of interest this yr.