Oil prices ease after demand increase indications

Oil prices declined on Tuesday following anticipated increase in Chinese demand, Reuters reported. Chinese oil imports are expected to reach 540 million tons in 2023, an annual forecast by China National Petroleum Corp said.

Tina Teng, an analyst at CMC Markets stated to Reuters that “China’s manufacturing and services PMIs will be a major economic driver to oil prices as positive data is most likely to further improve the demand outlook.”

West Texas Intermediate (WTI) U.S. crude went down to $72.80 a barrel. Brent crude fell to $77.93 a barrel by 8:51 CLT (6:51 GMT).

“Though risks remain in the banking system amid the recent event, dip-buys in crude oil could be the prevailing trend in the near term,” Teng further explained.

Crisis in the banking sector have lessened following the announcement of First Citizens BancShares’s acquirement of failed Silicon Valley Bank’s deposits and loans.