Oil rises as China seeks to allay economic concerns

Oil prices rose on Thursday after China’s central bank sought to rein in mounting pessimism about the country’s real estate market and broader economy.

Prices fell in the previous session, fueled by concerns about the impact of fuel demand on a major crisis in the real estate sector that impedes the momentum in the Chinese economy and the possibility of raising interest rates again in the United States.

Brent crude futures rose 67 cents to $84.12 a barrel, while US West Texas Intermediate crude rose 63 cents to $80.01 a barrel by 1058 GMT.

Interest rates also remain in focus after the release of the minutes of the Federal Reserve’s July meeting on Wednesday. The minutes of the meeting showed that central bank officials did not provide strong signals to stop raising interest rates in efforts to prioritize controlling inflation.

Higher interest rates increase borrowing costs for businesses and consumers, which could slow economic growth and lower demand for oil.

Data released on Wednesday showed that US crude oil inventories fell about six million barrels last week due to the strength of export operations and the pace of refinery operation.