Oil prices recovered slightly as data pointed to firm U.S. Fuel demand, providing respite after a 5% drop a day earlier on fears that demand will suffer from increased China COVID curbs and central bank interest rate hikes.
U.S. West Texas Intermediate (WTI) crude futures jumped 82 cents, or 0.9%, to $92.46 a barrel at 0659 GMT, after sliding $5.37 in the previous session driven by recession fears.
Brent crude futures for October, due to expire, climbed 89 cents, or 0.9%, to $100.20 a barrel, trimming Tuesday’s $5.78 loss. The more active November contract was up 88 cents, or 0.9%, at $98.72 a barrel.
The price swings since the Ukraine conflict began six months ago have rattled hedge funds and speculators and thinned trading, which in turn has made the market whipsaw even more.
Supporting market sentiment, data from the American Petroleum Institute (API) showed gasoline inventories fell by about 3.4 million barrels, while distillate stocks, which include diesel and jet fuel, fell by about 1.7 million barrels for the week ended Aug. 26 .