Oil prices rose in early Asian trading on Tuesday, recouping some of the previous session’s loss on slower economic growth in China, and a possible tightening of U.S. crude supplies.
Brent crude gained 20 cents to $78.70 a barrel by 10.13 A.M. Bangkok time, while U.S. West Texas Intermediate crude rose 23 cents to $74.38 a barrel.
Both contracts dropped by over 1.5% on Monday.
China’s economic growth in the second quarter missed expectations, while the unemployment rate among young people hit a new record in June as the country is struggling with the property sector and exports plunged over weak global demand.
Growth of the world’s second largest economy in the second quarter came in at 6.3% from a year prior, missing expectations of economists polled by Reuters for a 7.3% growth.
Still, markets are pricing in Beijing’s potential for more stimulus measures to boost the economy.
According to reports in the local media, the People’s Bank of China is considering lowering reserve requirements in the third quarter. The reserve requirement ratio was last cut in March, just after the government eased most anti-COVID measures.
The weekly U.S. inventory report from the American Petroleum Institute and the Energy Information Administration was expected to send more signals to the market on Tuesday and Wednesday. After a large buildup the previous week, the report should indicate a slight decrease in stockpiles.
