Oil Prices Climb as China, US Economic Data Lift Markets

Oil Prices Climb as China, US Economic Data Lift Markets
Oil Prices Climb as China, US Economic Data Lift Markets

Oil prices recovered after a 1% dip in the previous session on buoyant economic data from China and the United States, even as the surging Covid-19 pandemic in India capped prices.
Brent crude futures for July were at $68.40 a barrel, up 31 cents, or 0.5%, while US West Texas Intermediate crude for June rose 29 cents, or 0.5%, to $65, Reuters reported.
Both Brent and WTI are on track for a second weekly gain as easing restrictions on movement in the United States and Europe, recovering factory operations and coronavirus vaccinations pave the way for a revival in fuel demand, while pent-up summer travel is likely to give gasoline and jet fuel consumption a further boost.
In China, data showed export growth unexpectedly accelerated in April while a private survey pointed to a strong expansion in service sector activity.
However, crude imports of the world's biggest buyer fell 0.2% in April from a year earlier to 40.36 million tons, or 9.82 million barrels per day, the lowest since December.
In the United States, the world's largest oil consumer, jobless claims have dropped, signaling the labor market recovery had entered a new phase amid a booming economy.
However, oil demand recovery has been uneven as surging Covid-19 cases in India has reduced fuel consumption at the world's third-largest oil importer and consumer.
Resurgence of Covid-19 in countries such as India, Japan and Thailand is hindering gasoline demand recovery, energy consultancy FGE said in a client note, though some of that lost demand has been offset by countries such as China where recent Labor Day holiday travel surpassed 2019 levels.

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