Oil edges up, mkts shrug off China inflation data
Brent oil prices drop below $80 a barrel at ICE
Friday, 10 November 2023
SINGAPORE, Nov 09 (Reuters): Oil prices edged up on Thursday as markets shrugged off deflationary indicators in China and looked for further clues on the status of demand from the world's two biggest oil consumers.
Brent crude futures rose 67 cents, or 0.8 per cent, to $80.21 a barrel by 0730 GMT. US West Texas Intermediate (WTI) crude futures climbed 56 cents, or 0.7 per cent, at $75.89 a barrel.
The uptick came after both benchmarks fell more than 2 per cent to their lowest since mid-July on Wednesday, as worry over possible supply disruptions in the Middle East eased and concern over US and Chinese demand intensified.
"The more subdued gains still reflect reservations in place, with macroeconomic factors and technicals giving sellers the upper hand for now," said Yeap Jun Rong, a market strategist at IG.
Thursday's gains likely reflect an attempt for prices to stabilise after the strong sell-off in previous days, said Yeap.
Meanwhile, China inflation data released on Thursday showed that October CPI fell 0.2 per cent year on year, while PPI data fell 2.6 per cent year on year. This was broadly in line with a Reuters' poll that forecast CPI would fall 0.1 per cent and PPI 2.7 per cent.
Earlier in the week, customs data showed that China's total exports of goods and services contracted faster than expected, although its crude imports in October were robust.
On the plus side for oil demand, central bank governor Pan Gongsheng said China was expected to achieve its annual growth target of 5 per cent for this year.
For the United States, inventory data may indicate a weakening in demand. US crude oil inventories increased by 11.9 million barrels over the week to Nov. 3, sources said, citing American Petroleum Institute figures.
Meanwhile, Brent oil futures with delivery in January fell below $80 per barrel at the London-based ICE for the first time since July 21, according to trading data.
Brent prices lost 1.63 per cent to $79.98 per barrel.
Brent futures recovered later to $80 per barrel, down 1.61 per cent. WTI futures with the settlement in January plunged by 1.69 per cent to $75.68 per barrel.