Oil rises as data from China and the U.S. ease recession worries

FILE PHOTO – An oil field worker works at a pumping station at PetroChina’s Daqing oil field in northeast China’s Heilongjiang province, November 5, 2007. REUTERS/Stringer (CHINA)

SINGAPORE, Aug 8 (Reuters) – Oil prices rose from multi-month lows on Monday as investor appetite improved after U.S. jobs data and Chinese export data eased recession concerns.

Brent crude futures were up 81 cents, or 0.9%, at $95.73 a barrel by 0638 GMT. US West Texas Intermediate crude rose 75 cents, or 0.8%, to $89.76 a barrel.

Both contracts were higher on Friday after jobs growth in the United States, the world’s biggest oil consumer, unexpectedly accelerated in July. China also surprised markets on Sunday with faster-than-expected growth in exports. read more

Stephen Innes, managing director of SPI Asset Management, said signs of weak demand for US stocks last week encouraged trading on a bearish outlook. But jobs and export data have changed that view somewhat, he added.

Front-month Brent fell 13.7% to its lowest level since February last week, marking its biggest weekly decline since April 2020, while WTI lost 9.7% as concerns about a recession hitting oil demand weighed on prices. .

China, the world’s biggest crude importer, imported 8.79 million barrels per day (bpd) of crude oil in July, up from a four-year low in June but still down 9.5% from a year ago, customs data showed. .

Chinese refineries have cut inventories amid high crude prices and weak domestic margins, even as the country’s overall exports have gained momentum. read more

ANZ cut its oil demand forecasts for 2022 and 2023 by 300,000 bpd and 500,000 bpd, respectively, reflecting lower US gasoline demand and China’s zero-Covid strategy pushing the recovery further.

According to the bank, oil demand for 2022 is estimated to increase by 1.8 million barrels year-on-year and reach 99.7 million barrels.

Despite the expected embargo of the European Union, which will enter into force in December, Russian exports of raw materials and oil products continued. 5. read more

US energy firms last week cut the number of oil rigs by the most since September. It was the first drop in 10 weeks.

The U.S. clean energy sector got a boost on Sunday after the Senate passed a $430 billion bill aimed at fighting climate change, among other things. read more

Reporting by Florence Tan; Edited by Gerry Doyle and Bradley Perrett

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