Oil prices are rising on Tuesday morning after a rebound in the previous session, while before that quotations had been falling for three days in a row.
The price of July futures for Brent on London’s ICE Futures Exchange stood at $75.57 per barrel by 8:07 a.m., $0.34 (0.45%) above the close of the previous session. Those contracts rose $1.06 (1.4%) to $75.23 a barrel on Monday.
The price of WTI futures for June oil grew by $0.27 (0.38%) to $71.38 per barrel at electronic auctions of New York Mercantile Exchange (NYMEX) by that time. The day before the contracts value grew by $1.07 (1.5%) to $71.11 per barrel.
The strong macroeconomic data from China were a positive factor for the market, though it turned out to be worse than the market forecasts.
As it was reported, the industrial production in China in April increased by 5.6% compared to the same month last year after growth by 3.9% in March. Meanwhile, retail sales soared 18.4% last month after rising 10.6% a month earlier.
Analysts on average had forecast a 10.9% increase in industrial production and a 21% increase in retail sales, according to Trading Economics.
Also, the market is supported by hopes that the White House and Congress will be able to agree on raising the U.S. debt ceiling.
Negotiations on the debt ceiling between President Joe Biden and Republican House Speaker Kevin McCarthy are expected to resume on Tuesday.
Meanwhile, the U.S. Department of Energy announced plans to buy up to 3 million barrels of oil to replenish the strategic reserve. Last spring, Biden announced the sale of 180 million barrels from the reserve to combat fuel shortages in the market.
As of May 5, the volume of oil reserves in the strategic reserve was 362 million barrels, while the maximum possible level was 713 million barrels. The current figure is the lowest since the 1980s, writes MarketWatch.
