Oil prices edge higher on signs of steady demand in US, China 

SINGAPORE: Oil prices rose slightly on Wednesday as investors bet on stable demand from the United States and China, the world’s two largest consumers of crude, supported by signs of an improving global economic outlook.

Brent crude futures were up 29 cents, or 0.42 per cent, trading at $69 a barrel by 0105 GMT, while US West Texas Intermediate (WTI) crude gained 40 cents, or 0.6 per cent, to reach $66.92.

The gains came after two straight sessions of losses, with markets largely shrugging off concerns over possible supply disruptions following US President Donald Trump’s threats of tariffs on Russian oil imports.

Prices have remained within a narrow range recently as strong seasonal demand, especially during the Northern Hemisphere summer travel season, has clashed with fears that trade tensions could dent economic growth and curb fuel consumption.

Analysts at LSEG noted that “strong seasonal demand is currently providing upward momentum to oil prices, as summer travel and industrial activity peak.” They added that increased gasoline usage in the US around the Fourth of July holiday period pointed to solid fuel consumption, helping offset concerns around rising inventories and tariff-related risks.

In China, second-quarter economic data showed a slower pace of growth, but the slowdown was not as severe as feared. Analysts attributed this resilience to frontloaded activity ahead of expected US tariffs. Additionally, China’s crude oil throughput in June jumped 8.5 per cent from a year earlier, hitting its highest level since September 2023, as state-owned refineries boosted output amid improving profits.

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