Oil prices are rising after reaching their lowest levels in 2022

Oil prices recovered in early Asian trade on Thursday after tumbling to their lowest level this year, as production and gasoline inventories rose in the United States as concerns grew that an economic slowdown could weaken demand for fuel.

Brent crude futures rose $1 to $78.17 a barrel, by 0600 GMT, and West Texas Intermediate crude futures rose $1 to $73.01 a barrel.

On Wednesday, Brent settled below the lowest closing level recorded this year, which it touched on the first day of 2022, while US crude fell to a new low, the lowest in a year.

The US Energy Information Administration said on Wednesday that US crude production rose to 12.2 million barrels per day last week, the highest level since August.

While US crude stocks fell last week, gasoline and distillate stocks rose, exacerbating concerns about falling demand. The Energy Information Administration said that gasoline inventories grew by 5.3 million barrels during the week to 219.1 million barrels, and distillate stocks, including diesel and heating oil, swelled by 6.2 million barrels.

But data showing that the Japanese economy contracted less than expected in the third quarter helped push up oil prices.

The easing of COVID-19 restrictions in China, one of the world’s largest consumers of crude, has also helped stabilize oil prices.

Meanwhile, an official at the British Treasury said that officials from Western countries are in talks with their Turkish counterparts to find a solution to the queues waiting for oil tankers off Turkey.

This came after the Group of Seven and the European Union imposed new restrictions targeting Russian oil exports on the fifth of December.

At least 20 oil tankers are still facing further delays in transit from Russia’s Black Sea ports to the Mediterranean, as operators race to comply with new insurance rules approved by Turkey this month.