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Oil Bounces Back Slightly Ahead of Economic Figures

Published 05/11/2022, 10:46 AM
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By David Ho

Investing.com – Oil was up on Wednesday morning in Asia, as investors await US and China economic data.

Brent oil futures rose 1.38% to $103.87 by 10:24 PM ET (2:24 AM GMT) and crude oil WTI futures jumped 1.27% to $101.03.

Investors will be keeping an eye on China’s April factory gate prices and the US consumer-price index. A stronger dollar in particular, affects commodities like oil that are priced in the currency.

In addition, the oil market has been shaken in recent times by Russia’s invasion of Ukraine and COVID-19 lockdowns across China. The war has fanned inflation, driving up the cost of everything from food to fuel. Retail gasoline in the US hit a record ahead of the summer driving season.

After a robust start, oil is still up more than 30% for the year underpinned by economies rebounding from the pandemic. Officials in Saudi Arabia and the United Arab Emirates cautioned that spare capacity is decreasing in all energy sectors as producers slash investment, driving up prices.

The American Petroleum Institute reported US crude stockpiles rose by 1.62 million barrels last week, according to sources familiar with the data. Fuel inventories have also expanded.

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