NEW YORK: Oil prices edged up on Thursday after strong US economic data stoked expectations for higher crude demand, but the gains were limited by concerns about lower oil imports from China.
Brent crude futures for September rose 30 cents to $82.01 a barrel by 12:30 p.m. EDT (1630 GMT). US West Texas Intermediate crude for September gained 54 cents to $78.13. Commerce Department data on Thursday showed the US economy grew faster than expected in the second quarter while inflation eased, boosting expectations the Federal Reserve would lower interest rates in September. Lower interest rates are expected to stir economic activity, which could increase oil consumption.
“The US GDP data implied the economy is humming along in a pretty nice rate,” said Bob Yawger, director of energy futures at Mizuho in New York. “It’s an indication that we’re going to have a soft landing.”
In China, oil imports and refinery runs this year have trended lower than in 2023 on weaker fuel demand amid sluggish economic growth, government data showed. “While Chinese economic data remains disappointing, we are starting to see larger oil inventory draws, which suggests supply growth lags demand growth,” said UBS analyst Giovanni Staunovo.
On Thursday, China’s central bank unexpectedly cut interest rates in a move to shore up its weakening economy. Both crude oil benchmarks fell by more than $1 per barrel earlier in the session.
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