Oil up as US fuel stocks drop over expectations

By Sibel Morrow

ANKARA (AA) - Oil prices increased on Friday over demand euphoria after a slight drop in the US fuel inventories, coupled with positive sentiment over China’s COVID-19 recovery soon, however, ongoing fears about a global recession limited further price upticks.

International benchmark Brent crude traded at $79.35 per barrel at 09.54 a.m. local time (0654 GMT), a 0.83% increase from the closing price of $78.69 a barrel in the previous trading session.

The American benchmark West Texas Intermediate (WTI) traded at $74.37 per barrel at the same time, a 0.95% gain after the previous session closed at $73.67 a barrel.

An expected economic recession continues fueling investor demand fears, however, a surprise decrease in gasoline inventories in the world’s largest oil consumer, the US, signals a demand recovery.

The Energy Information Administration (EIA) said the country’s gasoline inventories decreased by 300,000 barrels to 222.7 million barrels last week.

Country’s commercial crude oil inventories rose by around 1.7 million barrels to 420.6 million barrels, however, the market expectation was a rise of around 3.3 million barrels.

Optimism on China’s Covid situation also contributes price upticks as the country is expected to stimulate its property sector, which means an increase in its oil demand as well.