Oil prices edge higher amid Ukraine tensions, stronger Chinese demand

WEB DESK: Global oil prices increased on Wednesday owing to the intensifying conflict in Ukraine and signs of higher crude imports by China. However, a rise in US crude oil stocks limited the overall gains.

Brent crude futures edged up by 9 cents, or 0.1 per cent, reaching $73.40 per barrel by 0003 GMT, while US West Texas Intermediate (WTI) crude futures rose by 14 cents, or 0.2 per cent, to $69.53 per barrel.

Market sources citing data from the American Petroleum Institute reported that US crude stocks grew by 4.75 million barrels for the week ending on November 15. At the same time, gasoline inventories dropped by 2.48 million barrels, and distillate stocks decreased by 688,000 barrels.

The escalating war between Russia and Ukraine, key players in global oil market, has put pressure on prices.

On Tuesday, Ukraine reportedly used US-supplied ATACMS missiles to strike Russian territory for the first time, which led Russian President Vladimir Putin to issue new warning about the possibility of a nuclear response.

According to ANZ analysts, these developments have heightened concerns about potential disruptions to global oil supplies.

China’s crude imports, which have been low for much of the year appear to be picking up again. Vessel tracking data from Kpler suggests that China’s imports could end November near record levels, supporting the upward trend in oil prices.

Weak demand from China earlier this year had contributed to a 20 per cent drop in Brent prices since April when it had been trading above $92 per barrel.

Read next: Weaker dollar pushes gold to one-week high