Oil prices increasing: Strong Chinese Data Balances US Rate Concerns


chinese data balances us rate

HOUSTON, April 18 (Reuters) - Oil rates were small changed on Tuesday as upbeat economic data in No. 2 oil consumer China offset concerns that possible increases in U.S. interest prices could dampen growth in the top consuming nation.

Brent crude settled 1 cent or 0.01 percent, big at$85.25 a barrel, time West Texas in the center of simple upcoming to lock up 3 cents, or 0.04 percent at $80.86.

China's economy fell out by a faster-than-anticipate 4.5% in the beginning quarter while oil refinery throughput rose to record size in March, data appear.

"The large image with China's growth still suggests a market that is undersupplied," said Phil Flynn, an analyst at Price Futures Group.

The U.S. central bank most likely has one more interest rate rise in store to fight inflation, Atlanta Fed President Raphael Bostic said.

"The next step may depend on global growth and whether the economy can weather the recent storm, particularly in the U.S., where tighter credit could significantly weigh on growth for the rest of the year," said Craig Erlam of brokerage OANDA, referring to the oil price outlook.

Crude was also forced by the Iraq federal regime and Kurdistan Regional regime (KRG) to take a step towards a resumption of northern oil exports from the Turkish port of Ceyhan after they were halted last month.

The dollar eased on Tuesday after the upbeat China data. A stronger dollar makes commodities priced in the U.S. currency more expensive for buyers holding other currencies.

Most traders, however, believe that the recent crude price rally is in need of a correction, said Dennis Kissler, senior vice head of state of trading at BOK Financial.

Crude prices posted gains for the last four weeks, a streak not seen since June 2022.

Late in the afternoon, market sources citing American Petroleum Institute figures said U.S. crude oil stocks fell by about 2.68 million barrels, while fuel inventories also fell last week.

Analysts forecast a drawdown of 1.1. a million barrels in crude stockpiles last week, as well decline in gasoline and distillates.

The U.S. regime will release its stockpile data on Wednesday morning.

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