Oil climbs amid resurgent Chinese demand, Opec+ cuts

Oil prices climbed on Wednesday, paring losses from the previous session, as investors jumped into more risky assets such as commodities amid gains in broader equity markets and on signs of renewed demand from top oil- importer China. Brent crude futures for December settlement rose 46c, or 0.5percent, to $ 90.49 a barrel by 4.55am GMT. US West Texas Intermediate ( WTI) crude for November delivery was at $ 83.69 a barrel, up 87c, or 1.1percent. WTI’s front- month contract expires on Thursday and the more active December contract was at $ 82.89, up 82c, or 1.0percent.

In the previous session, Brent fell by 1.7percent and WTI fell by 3.1percent to their lowest in two weeks on reports of US President Joe Biden’s plans to release more barrels from the Strategic Petroleum Reserve ( SPR).

Oil prices were also buoyed by better risk sentiment, which was lifted by upbeat US corporate earnings and rising equity markets. “The small rebound in oil prices is more likely due to more positive sentiment on the equity bourses and return of risk on trades than industry fundamentals,” said Suvro Sarkar, lead energy analyst at DBS Bank in Singapore.