Oil prices rebound

Published January 5th, 2023 - 07:47 GMT
Oil rebounds
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ALBAWABA — Oil prices rebounded on Thursday after opening the year down more than 9 percent, the worst yearly start in more than three decades.

In the previous two sessions, Brent and WTI's declines of more than 9 percent were the biggest two-day losses at the start of a year since January 1991, according to Refinitiv Eikon data.

Prices continued to gain ground after official U.S. data showed a smaller-than-expected weekly rise in domestic crude inventories, as well as declines in petroleum product stockpiles.

U.S. crude oil inventories rose by 3.3 million barrels last week along with gasoline stocks jumping 1.2 million barrels, while distillate stocks, primarily used as a transportation fuel in trucks but also for heating homes, fell, according to market sources citing American Petroleum Institute figures.

Investors expect that long-term fuel demand will remain steady.

The rebound followed two days of steep declines to start off 2023, as investors worry about a potential global recession and the gloomy short-term economic outlook in the world's two biggest oil consumers — the U.S. and China.

Brent crude futures gained 1.32 percent to $78.87 a barrel at 14:40 GMT, while U.S. West Texas Intermediate crude futures inched up by 0.96 percent to $73.77 a barrel.

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