Oil Rises 3% After A Decrease in The US Stocks

Oil prices rose nearly 3% on Thursday, as strong data on US fuel consumption and an expected decline in Russian supplies at the end of the year. Concerns arose about slowing economic growth that may decrease demand.

Brent crude futures rose $2.47, or 2.6 percent, to $96.12 a barrel by 1541 GMT. West Texas Intermediate crude futures also increased by $2.16, or 2.5 percent, to $90.27 a barrel.

Prices had risen more than one percent in the previous session, although Brent fell during those trading to its lowest level since February.

Future Contracts have fallen over the past few months, as investors were influenced by economic data that raised fears of a possible recession that could affect energy demand.

Consumer price inflation in Britain jumped to 10.1 percent in July, which is the highest level since February 1982, adding to the pressure on households.

Refinery production in China remained weak in July, as strict coronavirus shutdowns and fuel export controls curbed production.

Crude prices were supported by data from the US Energy Information Administration, which showed that stocks in the United States fell by 7.1 million barrels in the week ending August 12, compared to expectations for a decrease of 275,000 barrels, while exports amounted to five million barrels per day, which is the highest level ever.

Analysts warn that the European Union's ban on seaborne Russian crude starting in December and on product imports early next year could decrease supplies and raise prices.

But for now, Russia has begun to gradually increase oil production after sanctions-related restrictions and with Asian buyers increasing purchases, prompting Moscow to raise its forecast for production and exports until the end of 2025, as an economy ministry document seen by Reuters showed.

Russia's revenue from energy exports is expected to rise by 38 percent this year, partly due to higher oil exports, according to the document, indicating that supplies from the country have not been affected as much as markets initially expected. (Reuters)