Oil Extends Gains As China Optimism Offsets Signs Of Rising Stockpiles

Oil prices were moving higher for a fifth straight session on Wednesday despite lingering demand concerns and rising economic uncertainties.

Benchmark Brent crude futures jumped 0.7 percent to $80.69 a barrel, while WTI crude futures roe 0.6 percent to $75.55.

The oil market continues to take solace from China’s decision to reopen its borders and expected boost to oil demand.

Investors shrugged off industry data showing an unexpected build in crude and fuel inventories in the U.S., the world’s biggest oil consumer, and the World Bank’s warning of an impending recession.

Data from the American Petroleum Institute showed that U.S. crude oil stockpiles jumped by 14.9 million barrels in the week ended Jan. 6, more than four times from the previous week’s level.

However, distillate stocks, which include heating oil and jet fuel, rose by about 1.1 million barrels.

Trading later in the day may be impacted by the release of inventory data from the U.S. Energy Information Administration.

The big focus this week is on U.S. consumer price inflation data, due on Thursday, which may show further signs of softening in prices.