Oil prices climbed on Wednesday, paring losses from the previous session, as investors jumped into riskier assets such as commodities amid gains in broader equity markets and on signs of renewed demand from top oil importer China.
Brent crude futures for December settlement rose 22 cents, or 0.2%, to $90.25 a barrel by 0620 GMT.
U.S. West Texas Intermediate crude for November delivery was at $83.50 a barrel, up 68 cents, or 0.8%. WTI’s front-month contract expires on Thursday and the more active December contract was at $82.66, up 59 cents, or 0.7%.
In the previous session, Brent fell by 1.7% and WTI by 3.1% to their lowest in two weeks on reports of U.S. President Joe Biden’s plans to release more barrels from the Strategic Petroleum Reserve (SPR).
Oil prices were also buoyed as risk sentiment was lifted by upbeat U.S. corporate earnings and rising equity markets.
“The small rebound in oil prices is more likely due to more positive sentiment on the equity bourses and return of risk on trades (rather) than industry fundamentals,” said Suvro Sarkar, lead energy analyst at DBS Bank in Singapore.