Crude rose more than 1 percent as U.S. inflation data slipped and demand was optimistic

News on January 12: International crude oil futures rose more than 1% on Thursday (January 12) as data showed an unexpected decline in consumer prices in the United States in December and a positive
outlook for Chinese demand.

By the close, the West Texas Intermediate (WTI) February contract, the most actively traded West Texas Intermediate crude on the New York Mercantile Exchange (NYMEX), was up $0.
98 or 1.
3 percent at $78.
39 a barrel
.

Brent crude futures, the global benchmark, for March crude ended up $1.
36, or 1.
7 percent, at $84.
03 a barrel
.

The two benchmark contracts have risen more than 3 percent on Wednesday amid expectations that the global economic outlook may not be as bleak
as many feared.

The US consumer price index (CPI) for December, released on Thursday, fell by 0.
1% month-on-month, indicating that US inflation is in a sustained downward trend
.

In China, the largest importer of crude oil, China is reopening its economy as pandemic restrictions are lifted, boosting hopes of increased demand for Chinese crude
.

Also boosting oil prices was the fall in
the dollar.
The dollar fell to a near nine-month low against the euro as U.
S.
inflation data reinforced expectations
that the Federal Reserve would slow its interest rate hikes in the future.

Bob Smith Bank, Head of New York Energy Futures? Youngor said a weaker dollar helped oil prices rise
.

Analyst Clegg Oram said that the US economy is expected to have a soft landing, coupled with China's economy is expected to achieve a strong rebound after the epidemic, may stimulate additional growth in crude oil demand
.

The EU plans to begin an embargo on Russian refined oil products on February 5 and activate a price cap
on refined products.
The U.
S.
Energy Information Administration warned that the EU embargo on Russian refined products could be more damaging
than the December 5 embargo on Russian crude.

However, the sharp increase in U.
S.
crude oil inventories has limited the rebound
space for crude oil prices.
In the week ended Jan.
6, U.
S.
crude inventories rose by 19 million barrels to 439.
6 million barrels
.
Analysts expected inventories to fall by 2.
2 million barrels
ahead of the report.

U.
S.
WTI crude is down 2.
33% so far this month, closing on Tuesday down 4.
54% from a year earlier; Brent crude is down 2.
19 percent so far this month and down 0.
52 percent
on Tuesday from a year earlier.

In 2022, U.
S.
WTI crude oil rose by 6.
71%, continuing the trend of rising 55.
5% in 2021; Brent crude oil rose 10.
45% in 2022 and 50.
5%
in 2021.