# Oil rises on strong crude demand, despite China fears Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2022-10-27 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Oil Rises on Optimism Over Record U.S. Exports Meta Description: Discover why oil prices are increasing due to optimism over U.S. crude exports and fading recession concerns, despite worries over slack demand in China. URL: https://financedigest.com/oil-rises-on-strong-crude-demand-despite-china-fearshtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2022-10-27t004641z1lynxmpei9q00hrtroptp4global-economy-oil-1736814962864-compressed.jpg) By Alex Lawler LONDON (Reuters) -Oil rose on Thursday, extending a rally of nearly 3% in the previous session, as optimism over record U.S. crude exports and signs that [recession fears](https://www.financedigest.com/banking-turmoil-means-recession-fears-are-creeping-back.html "Banking turmoil means recession fears are creeping back") are abating outweighed concern over slack demand in China. [Figures on Wednesday showed record](https://www.financedigest.com/record-ils-figures-highlight-abundance-of-alternative-capital-according-to-aon-ils-report.html "Record ILS figures highlight abundance of alternative capital, according to Aon ILS report") U.S. [crude exports, a hopeful sign for demand, even as crude stocks](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") rose. The U.S. [dollar weakened in early trade on hopes that interest-rate hikes](https://www.financedigest.com/oil-up-2-as-dollar-weakens-on-small-us-fed-rate-hike.html "Oil up 2% as dollar weakens on small US Fed rate hike") may become less aggressive. It appears that recession concerns have abated lately but [continuously betting on healthy economic growth](https://www.financedigest.com/swedish-match-continues-to-see-strong-smoke-free-sales-growth.html "Swedish Match continues to see strong smoke-free sales growth") will prove foolhardy,” said Tamas Varga, an analyst at oil broker PVM. Brent crude rose 56 cents, or 0.6%, to $96.25 a barrel by 1057 GMT. U.S. West Texas Intermediate (WTI) crude [gained 41 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 0.5%, to $88.32. [Worries about Chinese demand](https://www.financedigest.com/oil-falls-on-demand-worry-as-fed-make-or-break-moment-approaches.html "Oil falls on demand worry as Fed ‘make or break moment’ approaches") limited the rally. Global investors dumped Chinese assets early this week on fears about growth, with the economy beset by a zero-COVID policy, a [property crisis and falling market](https://www.financedigest.com/2017-spanish-property-market-gems-kyero-com-gazes-into-the-crystal-ball.html "2017 Spanish property market gems – Kyero.com gazes into the crystal ball") confidence. China is the [world’s biggest](https://www.financedigest.com/biggest-economy-in-the-world.html "Biggest Economy in the World") energy consumer. Concerns that [China’s muddled economic policies](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") may continue under President Xi Jinping’s growing power weighed on sentiment,” said Hiroyuki Kikukawa, general manager of research at Nissan Securities. Although the [dollar reversed early losses that saw it touch a one-month low](https://www.financedigest.com/euro-rises-after-spanish-cpi-dollar-slips-towards-8-mth-low.html "Euro rises after Spanish CPI, dollar slips towards 8-mth low"), it remained pinned near October’s trough. Hopes that the U.S. Federal Reserve will shift to less aggressive [interest rate](https://www.financedigest.com/ecb-raises-interest-rates-again-cuts-bank-subsidies.html "ECB raises interest rates again, cuts bank subsidies") increases have been weighing on the U.S. currency. \[USD/\] A weaker dollar makes oil cheaper for holders of other currencies and tends to reflect greater [investor appetite for risk](https://www.financedigest.com/stocks-rise-after-bank-sale-fuels-investor-risk-appetite.html "Stocks rise after bank sale fuels investor risk appetite") assets. [Crude has slumped on economic concerns](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") after surging earlier this year after Russia invaded Ukraine, with Brent coming close to its all-time high of $147 in March. U.S. and Western officials are finalising plans to impose a cap on Russian oil prices amid a warning from the [World Bank that any plan will need active participation of emerging market economies](https://www.financedigest.com/at-chinas-largest-trade-fair-exporters-worry-about-world-economy.html "At China’s largest trade fair, exporters worry about world economy") to be effective. (Additional reporting by Yuka Obayashi in Tokyo; Editing by Mike Harrison, Kirsten Donovan) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---