Oil prices hold gains buoyed by Chinese trade data

Oil prices remained steady on Thursday, buoyed by positive Chinese trade data and a smaller-than-expected increase in US crude inventories, Reuters reported on Thursday.

Brent crude futures were at $82.88 a barrel, while US West Texas Intermediate (WTI) crude futures stood at $79.06 a barrel.

Despite China’s strong import and export growth, concerns about potential delays in US interest rate cuts limited gains.

China’s trade balance data indicated a positive outlook for oil demand, with a 5.1 per cent increase in imports and a significant drop of 30 per cent in refined products exports.

This data, along with upbeat global trade signals, suggests a positive trend for the economy.

While crude inventories rose slightly, gasoline and distillate stocks saw larger-than-expected declines. However, the strength of the US dollar and concerns about the timing of interest rate cuts may impact market stability in the short term.

Fed Chair Jerome Powell’s comments on inflation and potential rate cuts further add to market uncertainty.