Global crude oil prices jumped 2% today as China rebounds!

Global crude oil prices rose today as stronger-than-expected economic data from China raised hopes for a rebound in demand in the country, helping the market see signs of another big increase in U.S. inventories.

Based on the report we summarize directly from the investing.com site, China's PMI Index, an indicator of business activity, jumped to its highest level in more than three years in February. The figure was driven by a larger-than-expected increase in manufacturing and non-manufacturing PMIs. The data shows that the economic recovery in the world's largest oil importer is gaining momentum after the easing of most anti-Covid measures earlier this year. Today's world crude oil prices, Brent oil futures jumped 0.9% to $ 83.81 per barrel, while WTI crude oil futures rose 0.4% to $ 77.38 per barrel. Both contracts extended their gains for the second straight session. Strong data from China added to bets that the recovery for the Asian giant will push oil demand to a record high this year. This idea also supported oil prices in the last session, rising by 2% on Tuesday. The data also certainly helped the market to see the economic growth reading from the forecast of the main crude oil importer in India. On the supply side, industry data showed that U.S. crude inventories likely grew for a 10-week period, pointing to a glut in the world’s largest oil consumer. The API data showed crude inventories grew by a larger-than-expected 6.2 million barrels in the week to Feb. 24, and marked a similar build in government data due later in the day. The numbers, combined with signs of slowing U.S. gasoline demand, suggest that U.S. crude consumption remains under pressure as the country grapples with high inflation and rising interest rates. Concerns that these trends, particularly rising interest rates, could dampen economic growth and, in turn, demand for crude have weighed on oil prices in recent months. Markets are also concerned that a global recession could largely offset a rebound in demand in China. The focus this week will be on U.S. business activity in February, due out on Wednesday and Friday. Manufacturing activity is expected to contract, offsetting strength in the services sector.