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Oil prices rose Thursday, January 14th, after US crude stocks fell for the fifth week in a row and strong data from China showed a rise in imports, but the increase in global coronavirus infections curbed the gains.
Brent crude futures gained 13 cents, or 0.2%, to $56.19 a barrel, while US West Texas Intermediate crude increased 20 cents, or 0.4%, to $ 53.11 a barrel.
Customs data showed that China’s total imports of crude oil rose 7.3% in 2020 despite the shock of the Corona virus, as it received unprecedented quantities in the second and third quarters of the year with the increase in refinery activities and the low prices that encouraged storage.
The US Energy Information Administration said on Wednesday that US crude stocks fell last week more than expected, while gasoline and distillate stocks increased as refiners intensified production to the highest levels since August. Prices are also supported by a generous package to mitigate the repercussions of Covid-19, which the next US President Joe Biden will unveil on Thursday. But concerns about mounting virus infections and its impact on oil demand are curbing prices.
China, the second-largest oil consumer in the world, announced the largest jump in daily COVID-19 cases in more than ten months, as infections in the northeastern Heilongjiang Province nearly tripled, highlighting the growing risk ahead of a major public holiday.
And governments across Europe announced more severe and longer general isolation measures yesterday, Wednesday, due to the new, fastest-spreading strain of the Coronavirus that was detected in Britain, while vaccination operations are not expected to help much over the next two or three months.
An official at the International Energy Agency said that oil producers are facing an unprecedented challenge to achieve a balance between supply and demand, as factors including the pace of distribution of Covid-19 vaccines and the response to them loom over expectations.
