# Oil prices rebound after OPEC upgrades China demand outlook Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-03-15 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil prices rebound over 1% after plunge, OPEC outlook on Meta Description: Oil prices recover after previous day's plunge, with Brent crude climbing 1.2% to $78.38 and WTI gaining 1.4% to $72.29 amidst concerns over recent U.S. URL: https://financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlookhtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-03-15t020831z2lynxmpej2e024rtroptp4global-oil-1736814314543-compressed.jpg) By Yuka Obayashi and Florence Tan TOKYO (Reuters) – Oil prices rebounded more than 1% on Wednesday, recovering from the previous day’s plunge, as a stronger OPEC outlook on China’s demand helped offset bearish global investor sentiment in the wake of the recent U.S. [bank failures](https://www.financedigest.com/bank-of-england-fines-former-tsb-executive-over-2018-it-failure.html "Bank of England fines former TSB executive over 2018 IT failure"). Brent crude futures climbed 93 cents, or 1.2%, to $78.38 a barrel by 0324 GMT. U.S. West Texas Intermediate crude futures (WTI) [gained 96 cents](https://www.financedigest.com/survey-only-7-per-cent-of-businesses-gdpr-compliant-as-deadline-looms-data-privacy-gains-prominence.html "Survey: Only 7 per cent of businesses GDPR-compliant as deadline looms, data privacy gains prominence"), or 1.4%, to $72.29 a barrel. On Tuesday, the benchmarks fell more than 4% to a three-month low. The oil [market has bounced back](https://www.financedigest.com/analysis-bond-traders-get-their-swagger-back-in-rate-obsessed-markets.html "Analysis-Bond traders get their swagger back in rate-obsessed markets") on its own after the recent sharp losses,” said Toshitaka Tazawa, an analyst at Fujitomi Securities Co Ltd, adding some investors had taken advantage of the slide to hunt for bargains. The OPEC upgrade in Chinese oil [demand outlook](https://www.financedigest.com/reinsurance-demand-increasing-as-growth-opportunities-emerge-according-to-aon-outlook-report.html "Reinsurance demand increasing as growth opportunities emerge, according to Aon outlook report") also lent support, though investors were still concerned over a cascading financial crisis after the recent collapse of U.S. banks,” he said, noting that whether WTI can stay above $70 a barrel is being closely watched. The Organization of the Petroleum Exporting Countries (OPEC on Tuesday further raised its forecast for Chinese oil demand growth in 2023 due to the relaxation of the country’s COVID-19 curbs, although it left the [global demand](https://www.financedigest.com/artificial-intelligence-goes-global-demand-for-ai-reaches-four-continents-in-three-months-new-figures-from-synechron-show.html "Artificial Intelligence goes global: demand for AI reaches four continents in three months, new figures from Synechron show") total steady, citing potential downside risks for world growth. Chinese refineries processed 3.3% more crude in the first two months of 2023 compared with the same period a year earlier, data showed on Wednesday, spurred by fuel [export policy](https://www.financedigest.com/dutch-responds-to-us-china-policy-with-a-plan-to-curb-semiconductor-tech-exports.html "Dutch responds to US China policy with a plan to curb semiconductor tech exports") and independent refiners processing more in response to improving margins for transportation fuels after Beijing lifted COVID restrictions. China’s [demand recovery is bullish for oil](https://www.financedigest.com/oil-gains-after-iea-sees-demand-rising-to-record-high.html "Oil gains after IEA sees demand rising to record high") prices, said Stefano Grasso, a senior portfolio manager at 8VantEdge in Singapore. The consensus is that the oil supply-demand balance will tighten in the second half, driven by China rebound, unless a severe [global recession](https://www.financedigest.com/world-bank-warns-global-economy-could-easily-tip-into-recession-in-2023.html "World Bank warns global economy could easily tip into recession in 2023") hits,” he added. The failure of [Silicon Valley Bank](https://www.financedigest.com/exclusive-u-s-regulator-seeks-sale-of-silicon-valley-bank-signature-bank-portfolios-sources.html "Exclusive-U.S. regulator seeks sale of Silicon Valley Bank, Signature Bank portfolios-sources") and Signature Bank triggered concerns about risks to other banks resulting from the U.S. Federal Reserve’s sharp interest [rate hikes](https://www.financedigest.com/uk-economys-unexpected-bounce-spurs-more-boe-rate-hike-talk.html "UK economy’s unexpected bounce spurs more BoE rate hike talk") over the last year. That also spurred speculation about whether the [central bank](https://www.financedigest.com/governments-and-central-banks-risk-inflation-bank-of-england-has-done-its-bit-now-the-politicians-turn.html "Governments and central banks risk inflation, Bank of England has done its bit, now the politicians’ turn") could slow the pace of its monetary tightening. On Tuesday, the U.S. [inflation data](https://www.financedigest.com/oil-jumps-on-lower-than-expected-us-inflation-data.html "Oil jumps on lower-than-expected US inflation data") came in line with expectations, bolstering bets on a smaller interest rate hike by the Fed at its meeting next week. Meanwhile, U.S. [crude oil](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") inventories rose by about 1.2 million barrels in the week ended March 10, in line with a Reuters poll, while fuel stockpiles fell, according to market sources citing American Petroleum Institute figures on Tuesday. On the supply side, Saudi Arabia’s energy minister Prince Abdulaziz bin Salman told Energy Intelligence in an interview on Tuesday the OPEC+ alliance – OPEC and allied oil producers including Russia – will stick to production [cuts agreed in October until the end of the year](https://www.financedigest.com/inpost-sees-better-margin-in-poland-plans-no-job-cuts-this-year.html "InPost sees better margin in Poland, plans no job cuts this year"). The International Energy Agency (IEA) will publish its [monthly report](https://www.financedigest.com/stablecoin-tether-hires-bdo-italia-for-monthly-proof-of-reserve-reports.html "Stablecoin Tether hires BDO Italia for monthly proof-of-reserve reports") later on Wednesday and the U.S. Energy [Information Administration will publish weekly inventory data](https://www.financedigest.com/more-than-half-52-of-cisos-are-prioritising-gdpr-compliance-over-the-next-12-months-new-data-from-the-2017-financial-services-information-security-network-shows.html "More than half (52%) of CISOs are prioritising GDPR compliance over the next 12 months, new data from the 2017 Financial Services Information Security Network shows") at 10:30 a.m. EDT. \[IEA/S\] (Reporting by Florence Tan in Singapore and Yuka Obayashi in Tokyo; Editing by Kenneth Maxwell) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---