Oil Prices Rebound Despite Demand Growth Concerns in China, U.S

Oil prices experienced a modest rebound on Wednesday following extended declines, as indications of supply tightness due to output cuts by major producers outweighed concerns about demand growth in China and the U.S., the world’s largest crude consumers.

Brent crude futures edged up by 17 cents to $82.21 a barrel at 0440 GMT after a decline in the previous four sessions, while U.S. West Texas Intermediate crude futures rose by 19 cents to $78.34 a barrel, reversing losses from the past two days.

China’s announcement of an economic growth target of around 5% for 2024 on Tuesday, without significant stimulus measures to support its struggling economy, raised concerns about potential lagging demand growth in the country. Market analyst Tony Sycamore from IG in Sydney highlighted the market’s desire for more details on China’s plans to achieve its growth target, particularly expecting further fiscal expansion to bolster growth.

Attention also turned to U.S. Federal Reserve Chair Jerome Powell’s semi-annual monetary policy testimony to Congress and Friday’s U.S. employment data. Economists anticipate an increase of 200,000 jobs in February, following a surge of 353,000 in January, according to a Reuters survey.

Source: Reuters