Africa-Press – Kenya. Crude oil prices rebounded on Wednesday after estimates of a massive weekly drop in US crude inventories, while prospects of another OPEC+ production cut also boosted prices ahead of the group’s meeting on Friday.
International benchmark Brent crude traded at $85.64 per barrel at 10.08 a.m. local time (0708 GMT), a 0.86% gain from the closing price on Tuesday of $84.91 per barrel.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $82.06 per barrel, up 0.85% from the session close of $81.37 per barrel on Tuesday.
Investor risk appetite was constrained after Fitch cut the US’ credit rating, citing fiscal deterioration, but a big plummet in US commercial crude oil stockpiles mitigated concerns, as a robust stockpile draw signals solid oil demand in the world’s top oil-consuming economy.
Inventories are estimated to contract by around 15.4 million barrels, higher than the market forecast of a drop of 900,000 barrels.
However, demand in China is still on investors’ watch lists as the country tries to recover from pandemic-era demand weakness.
Analysts say worrisome economic data from China may lead to another output cut decision by the OPEC+ group during its meeting on Friday.
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