Oil prices rose on Wednesday as Saudi Arabia’s promise of a surprise weekend production cut outpaced China’s weak export data and rising US fuel inventories.
Figures released during the week showed that Brent crude futures rose 81 cents (1.06%) to $77.10 per barrel, while West Texas Intermediate crude futures rose 85 cents (1.25%) to $72.64.
Both benchmarks surged more than $1 on Monday after Saudi Arabia decided over the weekend to cut July production from 1 million barrels per day (bpd) to 9 million barrels per day (bpd).
Weak Chinese economic data and higher US fuel inventories lowered prices earlier in the session.
China’s exports in May declined much faster than expected and imports declined, albeit at a slower pace, as manufacturers struggled to find overseas demand and domestic consumption remained sluggish.
Wednesday’s data also showed crude oil imports into China, the world’s largest importer, increased to the third-highest monthly level in May.
The US Energy Information Administration (EIA) said on Tuesday that US crude oil production will grow faster this year and demand growth will be slower than previously projected.
