There is a better-than-expected last quarter recovery for the Chinese economy. Despite rising COVID-19 cases worldwide, economic growth and tight restrictions that could hinder fuel consumption, there is no fear.
Brent crude gained 3 cents, or 0.1%, at $55.13 a barrel by 0938 GMT while WTI oil was up 2 cents, or less than 0.1%, at $52.38.
The Chinese economy exceeded growth expectations, recovering in the fourth quarter because it hadled the coronavirus challange in 2020 extremely well. However, the pandemic intends to expand further this year without slowing down.
Honestly, China has been in stark contrast to the US and Europe in how quickly economies affected by the spread of the coronavirus can recover.
Corona-driven economic fears, security concerns ahead of the US presidency opening, the strength of the US dollar, and pessimistic investor sentiment play a role in the fact that Brent traded about $ 3 less than last Wednesday.
Last week US drillers operated more oil and gas rigs during the eighth week, encouraged by higher price strength that made production more profitable. However, the number of drilling rigs is still less than half what was a year ago.
US drillers need to continue to control their spending. The economy is also not in favor of an increase in drilling, half of the industry is still not economic.
Oil prices were also supported by the decline in Libyan oil production. Libya has reduced production to 200,000 barrels per day due to maintenance on the main pipeline connecting the Waha Oil Company, Al-Samah and Al-Dhahra oil fields to the Es Sider port.
