Oil fluctuated, remaining within a recent narrow range, as investors assessed more evidence of higher energy demand in China and a large build in US crude stockpiles.
West Texas Intermediate turned higher after earlier shedding 0.7% in a session that lacked meaningful price direction. Passenger loads at China’s top three airlines are rebounding as travel picks up again, adding to signs of increased mobility and energy consumption after refiners stepped up crude purchases and raised run rates.
That was overshadowed by a bumper build in US oil inventories on Wednesday. Crude stockpiles rose by more than 16 million barrels with key gauges for the American market continuing to point to oversupply.
At the halfway stage of February, crude is on track for its narrowest monthly band since June 2021. Prices have been caught between expectations of more robust demand in the coming months, a Russian pledge to cut production and uncertainty over global growth and the path of interest rates.
“The full force of the Chinese economic revival will be felt in the second half of the year,” said Tamas Varga, an analyst at brokerage PVM. “The first half is set to experience a swelling in global and OECD stocks effectively creating an insurmountable hurdle for a protracted price rally.”
China is holding its annual session of the National People’s Congress from March 5, at which fresh stimulus measures may be unveiled to bolster growth.
Prices:
WTI for March delivery was 0.1% higher at $78.69 a barrel at 12:35 p.m. in London.
Brent for April settlement gained less than 0.1% to $85.41 a barrel.
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