Oil prices managed to post a marginal rise today as concerns about demand growth eased after China released its data, which showed that the country’s economy expanded in line with predictions.
China’s data showed that the country’s gross domestic product (GDP) jumped 7.5% in April-June, while Reuters calculations revealed that its implied oil demand rose by 10% in June over a weak base in 2012 to 9.94 million barrels per day (bpd).
Crude supply rose 10.8% to 9.636 million bpd, which is the highest daily production since February, as refineries increased production after maintenance.
The US Commodity Futures Trading Commission’s weekly data showed that funds increased their net long futures and option positions in NYMEX and ICE US crude by over 26,000 contracts to more than 330,000 during the period.
Persistent worries about supply disruption also boosted prices, while Brent was above $100 for most of 2012 and in 2013 as a result of tensions between the West and Iran over Tehran’s controversial nuclear programme.
Image: Oil prices got a boost after China’s economy expanded as per forecasts; Photo: courtesy of Daderot.