Oil rises due to lack of supply and optimism about the recovery of demand from China

Oil prices rose in early Asian trade on Thursday, supported by signs of tight supply and optimism about a recovery in demand from China.

And by 0115 GMT, Brent crude futures prices rose five cents to $87.02 a barrel. West Texas Intermediate crude futures rose 16 cents, or 0.2 percent, to $80.71 an ounce.

The Chinese cities of Guangzhou and Chongxing announced on Wednesday the easing of anti-Covid-19 restrictions, a day after clashes between protesters in the southern city of Guangzhou and the police amid a series of protests against the most severe anti-Covid-19 restrictions in the world.

But China’s consumer price index revealed on Wednesday that business activity contracted further in November, raising concerns about next year.

The supply of crude oil is expected to remain limited.

The US Energy Information Administration reported that US crude stocks fell by about 13 million barrels, the largest level since 2019, in the week ending November 25. But US crude production exceeded 12 million barrels per day, the highest level since before the outbreak of the Corona virus.

An informed source told Reuters on Wednesday that the decision of the OPEC + group to hold its meeting on the fourth of December via the Internet indicates a low possibility of policy change, which limited oil gains.