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Oil finished a tumultuous session higher with record US exports slowing inventory builds, igniting crude market bulls even as persistent fears of higher interest rates dragged Wall Street lower.
West Texas Intermediate settled at its highest in nine sessions, with the Energy Information Administration reporting that exports jumped 23%, slowing recent inventory builds. Encouraging data out of China further supported the bulls’ thesis that global demand was on the mend and could support oil markets even amid concerns the US was headed for economic contraction.
“[EIA data] could be an indication that Asian demand, Chinese demand for oil could be returning,” said Rob Thummel, a portfolio manager at Tortoise Capital Advisors.
Crude trading ranges have narrowed in 2023 as the prospect of tighter US monetary policy and rising inventories jostle with optimism that Chinese demand will strengthen following the ending of Covid lockdowns. Still, most major banks forecast the price of oil will rise in the back half of the year.
Prices:
• WTI for April delivery gained 64 cents to settle at $77.69 a barrel in New York.
• Brent for May settlement increased 42 cents to settle at $84.31 a barrel.
