Oil prices rise 2% return to recent high

Oil prices increased around two percent on Tuesday building on optimism ahead of anticipated U.S. inflation report and following China’s economic data reveal, as Brent crude reached $85.61 a barrel while U.S. West Texas Intermediate rose to $81.53 a barrel.

Edward Moya, senior analyst at OANDA explained to Reuters “The short-term crude demand outlook will soon be clearer.”  Moya is referring to awaited U.S. inflation report and consequent Federal Reserve decisions.

Another determinant factor in deciding oil prices is the Chinese demand. Tina Teng, an analyst at CMC Markets stated “China’s March CPI is lower than expected.”

As a result, this “may promote the Chinese government to further stimulate the economy,” Teng elaborated.

March data about consumer inflation in China shows it increased at its slowest pace since September 2021.

Oil prices have increased around seven percent since OPEC+ countries announced surprising production cuts last week. The group’s output agreement is to expire by 2024.