Oil prices retreat after hitting 3-month high

By Zeynep Beyza Kilic

ANKARA (AA) - Oil prices declined on Thursday after reaching a three-month high as China reported stronger-than-expected exports in May fueling fears of a demand rise larger than the global supply.

International benchmark Brent crude was trading at $123.23 per barrel at 0651GMT for a 0.28% decrease after closing the previous session at $123.58 a barrel.

American benchmark West Texas Intermediate was at $121.72 per barrel at the same time for a 0.32% drop after the previous session closed at $122.11 a barrel.

Oil prices declined after the US Energy Information Administration data showed that the commercial crude oil inventories rose by 2 million barrels to 416.8 million barrels, against the market expectation of a drop of 1.8 million barrels.

As China returns to everyday life, new lockdown measures introduced in parts of Shanghai on Thursday continued to push the oil prices down.

Meanwhile, the drop in oil prices is limited by data from China's export sector.

China increased its exports by 16.9% compared to last year as COVID-19 cases have dropped and restrictions have been eased allowing some factories to resume their operations.

During the summer months, with the peak of the travel season, the fuel demand in the US is expected to increase, pushing the oil prices up.