Oil plays against the backdrop of increased refining volumes in China
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Oil prices rebounded on Thursday after falling on Wednesday, as data showed a jump in refining at the world’s biggest crude importer, China, even as a weak economy hampered growth.
It is reported Reuters.
How prices have changed
Brent crude futures were up 39 cents, or 0.6%, at $73.59 a barrel by 06:30 GMT.
US West Texas Intermediate (WTI) rose 39 cents, or 0.6%, to $68.66 a barrel.
Both benchmarks fell 1.5 percent on Wednesday after the U.S. Federal Reserve forecast the need for further rate hikes this year. That raised fears that high interest rates would slow the economy and reduce demand for oil.
What affected the prices
China’s oil refinery output rose 15.4% in May from a year earlier, the second-highest on record, according to data on Thursday.
The higher throughput came as refiners returned units after scheduled maintenance and independent refiners processed cheap imports.
But a weak economic outlook stymied Thursday’s gains as China’s industrial production and retail sales growth missed forecasts in May.
Industrial production in China increased by 3.5% in May, compared with April’s growth of 5.6%. Domestic retail sales, a key gauge of consumer confidence, rose 12.7%, beating forecasts for a 13.6% increase and slowing from 18.4% in April.
Adding to market jitters about weak fuel demand, the European Central Bank is almost certain to raise rates to their highest level in 22 years.
Economic truth
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