Oil prices rose slightly on Wednesday after a long decline, as signs of tightening supply amid production cuts by major producers outweighed concerns about rising demand in China and the United States, the world's two largest oil consumers, UNN reports citing Reuters.
Details
Brent crude oil futures rose 17 cents to $82.21 per barrel at 04:40 GMT after falling in the previous four sessions, while West Texas Intermediate futures rose 19 cents to $78.34 per barrel after falling over the past two days.
China's 2024 economic growth target of about 5%, set on Tuesday, does not include large-scale stimulus plans to support the country's struggling economy, increasing concerns that demand growth in the country may lag this year, the publication notes.
"The market wanted more details on how China intends to achieve its 5% growth target by 2024," said Tony Sycamore, market analyst at IG in Sydney.
Markets are looking forward to US Federal Reserve Chairman Jerome Powell's testimony before Congress on Wednesday and Thursday, as well as Friday's US employment data, Sycamore said.
Powell's comments and employment data may provide clearer direction on US interest rates, and signs of Fed rate cuts will be seen as positive for the economy and oil demand.
Addendum
Against this backdrop, oil prices were supported by the announcement on Sunday that OPEC+ countries extended their production cuts by 2.2 million barrels per day until the end of the second quarter.