Oil compensates for its losses, and “Brent” is at $90.49 a barrel

Oil prices rose on Wednesday, reversing losses incurred in the previous session, as investors turned to riskier assets such as commodities amid gains in stock markets and signs of renewed demand in China, the largest oil importer.
By 04:55 GMT, Brent crude futures for December settlement rose 46 cents, or 0.5 percent, to $90.49 a barrel.
US West Texas Intermediate crude for November delivery recorded $83.69 a barrel, an increase of 87 cents, or 1.1 percent.
In the previous session, Brent crude fell 1.7 percent and US crude fell 3.1 percent to its lowest level in two weeks due to reports that US President Joe Biden intends to withdraw more barrels from the Strategic Petroleum Reserve.
Oil prices also received a boost from risk appetite, which rebounded thanks to encouraging US corporate earnings and rising stock markets.
“The slight rise in oil prices is likely due to the high sentiment in stock exchanges and the return of risk in trading,” said Sophro Sarkar, senior energy analyst at DBS Bank in Singapore.
Prices also supported in light of signs of recovery in Chinese demand. Private refining giant Zhejiang Petrochemical Corp. took an additional quota for importing crude oil in 2022 of ten million tons, and the state-run ChemChina took an additional quota of 4.28 million tons. That equates to about 104 million barrels.
Market sources, citing figures from the American Petroleum Institute, said on Tuesday that crude stocks in the United States fell by about 1.3 million barrels in the week ending October 14. Gasoline stocks fell by 2.2 million barrels, while distillate stocks fell by 1.1 million barrels.
Inventory data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due later Wednesday.
(Archyde.com)