Oil Prices Recoup Losses

Oil Prices Recoup Losses
Oil Prices Recoup Losses

Oil prices rebounded more than 1% on Wednesday, recovering from the previous day's fall, after OPEC's upwards revision for Chinese consumption offset bearish global investor sentiment trigged by US bank failures.
Brent crude futures climbed $1.04, or 1.3%, to $78.49 a barrel, reported. 
US West Texas Intermediate crude futures gained 98 cents, or 1.4%, to $72.31 a barrel. On Tuesday, the benchmarks shed more than 4% to a three-month low.
"The oil market has bounced back on its own after the recent sharp losses," said Toshitaka Tazawa, an analyst at Fujitomi Securities Co. Ltd., adding some investors had used the slide to hunt for bargains.
"The OPEC upgrade in Chinese oil demand outlook also lent support, though investors were still concerned over a cascading financial crisis after the recent collapse of US banks," he said, noting that whether WTI can stay above $70 a barrel is being closely watched.
The Organization of Petroleum Exporting Countries on Tuesday further raised its forecast for Chinese oil demand growth in 2023 due to the relaxation of the country's Covid-19 curbs, although it left total global demand steady, citing potential downside risks for world growth.

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