Harvest Global Markets :

After falling to their lowest point this year during the previous session, oil prices rebounded on Thursday in Asian trade, despite concerns that economic slowdowns would reduce fuel demand. On Wednesday, Brent fell below the previous year’s closing low, which was set on the first day of 2022, while U.S. West Texas Intermediate crude fell to a new annual low. The Energy Information Administration reported on Wednesday that U.S. crude production reached 12.2 million barrels per day last week, the highest level since August. Last week, while crude stocks in the United States decreased, gasoline and distillate inventories increased, raising concerns about decreasing demand.

The EIA reported that distillate stocks, such as diesel and heating oil, increased by 6.2 million barrels during the week, while gasoline stocks increased by 5.3 million barrels to 219.1 million barrels. Oil prices rose as a result of data showing that Japan’s economy contracted less in the third quarter than initially thought. Oil prices stabilized as a result of China’s loosening of COVID-19 restrictions, one of the world’s largest consumers of crude oil. A British Treasury official stated that Western officials are conversing with Turkish counterparts to resolve oil tanker queues off Turkey. This comes after the G7 and European Union imposed new restrictions on Russian oil exports on December 5. Operators are rushing to comply with Turkish regulations, so at least 20 oil tankers are still experiencing delays on their way to the Mediterranean from Russia’s Black Sea ports.