Oil futures rebounded on Thursday after a two-day drop, ignoring data that indicated weak consumer demand in China. Despite the setback, crude prices attempted to recover, reaching their lowest level since mid-July.
- West Texas Intermediate crude for December delivery rose by 54 cents, or 0.4%, to $75.87 a barrel on the New York Mercantile Exchange.
- January Brent crude, the global benchmark, increased by 55 cents, or 0.9%, reaching $80.09 a barrel on ICE Futures.
The decline in crude prices over the past two days was triggered by weak China trade data. This concerning information raised concerns about demand from the second-largest crude consumer worldwide.
There are also indications of weak demand from the United States. The American Petroleum Institute reported an 11.9 million barrel rise in U.S. crude inventories last week, contributing to the downward pressure on crude prices.
China’s economic indicators further heightened worries about energy consumption. The country’s consumer-price index fell by 0.2% in October compared to the previous year, while the producer-price index dropped by 2.6%. These figures reveal a disinflationary trend that could lead to a slowdown in economic activity and reduced energy consumption.
Despite these challenges, industry experts remain cautiously optimistic about the future of oil futures. The market is expected to adapt and bounce back as conditions evolve.