A slight rise in oil, with the rise in US inventories

Oil prices rose slightly on Wednesday, amid an unexpected increase in US crude and fuel inventories, global economic uncertainty and China’s reopening of its economy.

Brent crude futures rose 53 cents, or 0.7 percent, to $80.63 a barrel by 0921 GMT. US West Texas Intermediate crude futures rose 41 cents, or 0.6 percent, to $75.53 a barrel.

Both benchmarks rose on Monday and Tuesday, recovering from a sharp sell-off in the first week of 2023.

Sources said, citing data from the American Petroleum Institute, that US crude stocks jumped by 14.9 million barrels in the week ending January 6. At the same time, distillate stocks, which include heating oil and jet fuel, rose by about 1.1 million barrels.

Analysts polled by Reuters had expected crude stocks to decline. Traders are awaiting inventory data from the US Energy Information Administration at 1530 GMT.

Prices did not jump, but they received some support from hopes for fuel demand growth in China, the world’s second largest oil consumer after the United States, as the country eased restrictions related to Covid-19 and increased crude import quotas by 20 percent.

“It is clear to market players that China’s return to normal life will not be enough to drive oil above $100 a barrel sustainably,” said Stephen Brennock, analyst at BVM.

“What is needed is an improvement in global growth. However, the outlook for the global economy is marred by higher inflation rates and tightening credit conditions,” he added.