Global oil prices ticked up on Thursday as economic indicators pointed to a gradual recovery in China, the world’s second-largest oil consumer.
Brent crude, the international oil benchmark, rose by 0.2% to reach $72.29 per barrel during early trading, while the U.S. benchmark West Texas Intermediate climbed by the same margin to $68.76 per barrel.
The rise follows China’s latest Purchasing Manager’s Index (PMI) data, which showed manufacturing expansion in October after six months of contraction. Analysts at ING suggest this could signal improved domestic demand, though caution remains regarding external demand.
U.S. economic data, meanwhile, presented a mixed picture. The Commerce Department reported a 2.8% GDP growth for Q3, falling short of the anticipated 3% growth rate and contributing to a cautious outlook for global demand. U.S. Energy Information Administration (EIA) data provided a counterbalance, showing a dip in U.S. crude oil inventories by 500,000 barrels to 425.5 million barrels for the week ending October 25, with gasoline stocks also declining by 2.7 million barrels.
Developments in the Middle East, including ongoing cease-fire negotiations mediated by Qatar, also played a role in easing price pressures. Talks held in Doha, involving high-profile officials from the U.S., Israel, and Qatar, focused on potential ceasefire terms and prisoner exchanges with Palestinian groups.
Qatar’s Foreign Ministry spokesperson expressed optimism for a breakthrough, which could alleviate some geopolitical risks impacting oil markets.
These converging factors leave analysts monitoring both supply and demand drivers, including China’s internal market shifts, U.S. economic trends, and diplomatic moves in the Middle East.
