Oil prices firm on hopes for demand recovery, interest rates

Oil prices were largely stable in early Asian trade on Thursday, as investors assessed optimism related to the demand outlook in China on the back of a possible hike in interest rates in central banks around the world.

By 0121 GMT, Brent crude futures rose one cent to $82.71 a barrel, while West Texas Intermediate crude futures fell four cents to $77.24 a barrel.

According to “Reuters”, the market received support from expectations from the International Energy Agency that demand in China will recover next year after declining by 400,000 barrels per day in 2022. The agency raised its forecast for oil demand growth in 2023 to 1.7 million barrels per day, to 101.6 million barrels per day.

Data revealed that land and air transport in China recovered strongly last month.

The US Federal Reserve raised interest rates by 50 basis points on Wednesday, a slight drop from the 75 basis point hike at the previous four monetary policy meetings. The central bank waved more interest rate hikes.