Crude oil continued its rally on Thursday on signs of a strong economic recovery in China, but inflation concerns kept prices from rising further. Here are the latest facts and figures you need to know about the current oil market trends.
 

Crude Oil Price Increase

Brent crude rose 0.7% to $84.88 a barrel, while U.S. WTI crude rose 0.8% to $78.27 a barrel on Thursday. The rise in crude prices was driven by a strong economic rebound in China, which is a major crude importer.
 

Manufacturing Activity Growth in China

Data showed that manufacturing activity in China grew at the fastest pace in more than a decade last month, adding to evidence that the world’s second-largest economy is recovering after easing tough Covid-19 restrictions. Imports of Russian crude via China’s seas are expected to hit a record high this month as refiners take advantage of cheap prices.

Inflation Concerns

Despite the rise in crude oil prices, the market remains weighed down by rising expectations of an interest rate hike by the European Central Bank (ECB) after faster-than-expected consumer prices accelerated in France, Spain and Germany. Eurozone inflation rose to a higher-than-expected annual rate of 8.5% in February, according to the first estimate from the EU statistics agency. This raised concerns about rising inflation and curbed crude oil prices.
 

Crude Oil Stockpiles in the United States

In the United States, a tenth straight week of crude stockpiles weighed on the market. However, inflation concerns remained a bigger drag on crude prices.
 

Conclusion

Crude oil prices rose on Thursday mainly due to a strong economic rebound in China, but inflation concerns remain a restraining factor for higher prices. While the market continues to monitor crude oil price movements, it is important for investors to follow the latest developments and government policies on inflation issues.

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