Oil prices rose on Wednesday, supported by expectations of strong summer demand in the US and China, even as broader economic concerns and rising inventories limited gains.
Brent crude climbed to nearly $69 a barrel, while West Texas Intermediate approached $67, reversing two days of declines. Analysts cited robust gasoline consumption during the US Fourth of July holiday and sustained industrial activity as drivers of near-term strength.
Despite signs of slowing growth in China, data showed June crude processing surged 8.5% year-on-year, pointing to resilient fuel demand. Meanwhile, Brent’s prompt spread remained over 90 cents in backwardation, underscoring tight near-term supplies.
However, some analysts warned the rebound may be temporary, with inventories building globally and US tariff threats posing risks to consumption. While OPEC remains optimistic about stronger economic growth in the second half of the year, others expect oil prices to drift sideways until clearer signals on demand recovery emerge.
Official US inventory data due later Wednesday was expected to confirm whether distillate and crude stockpiles continue rising, potentially adding pressure to prices already capped below $70 a barrel.