Oil ended a tumultuous session higher with record U.S. exports curbing inventory builds, sending the crude market higher even as lingering fears of rising interest rates they dragged Wall Street down.
West Texas Intermediate settled at a nine-session high, with the Energy Information Administration reporting that exports rose 23%, slowing recent inventory builds. Encouraging data from China further supported the bulls’ thesis that global demand was recovering and could support oil markets even amid concerns that the United States is headed for an economic contraction.
“[EIA data] it could be an indication that Asian demand and Chinese demand for oil could be coming back,” said Rob Thummel, portfolio manager at Tortoise Capital Advisors.
Crude trading ranges have been cut in 2023 as the prospect of tighter US monetary policy and rising inventories collide with optimism that Chinese demand will strengthen after the end of blockades of covid Still, most major banks expect oil prices to rise in the back half of the year.
Prices:
- WTI for April delivery gained 64 cents to settle at $77.69 a barrel in New York.
- Brent for May settlement rose 42 cents to settle at $84.31 a barrel.
