2024-01-25T04:52:21+00:00
A-
A
A+
/ Oil prices recorded gains during early Thursday trading, after data showed that US crude inventories fell more than expected last week, while the Chinese central bank’s announcement to reduce the reserve requirement ratio for banks boosted hopes for further stimulus measures and economic recovery.
Brent crude for March delivery rose 20 cents, or 0.3 percent, to $80.24 a barrel by 0128 GMT. U.S. West Texas Intermediate crude rose 22 cents, or 0.3 percent, to $75.31 a barrel.
“The significant drop in U.S. oil inventories, expectations of economic recovery and more stimulus measures in China have boosted oil prices,” said Toshitaka Tazawa, an analyst at Fujitomi Securities.
He added that tensions in the Middle East also supported buying.
The US Energy Information Administration said US crude inventories fell by 9.2 million barrels last week, more than four times the 2.2 million barrel draw analysts had expected in a Reuters poll, and oil prices were supported by hopes of an economic recovery in China.
China’s central bank announced on Wednesday a major cut in banks’ reserve requirements, a move that will pump about $140 billion of cash into the banking system and send a strong signal to support the struggling economy and slumping stock markets.
China also said Wednesday it was expanding the use of banks for commercial real estate lending, in its latest effort to ease a liquidity crunch facing struggling property companies.
Meanwhile, the focus remains on geopolitical tensions in the Middle East.