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Figures on Wednesday showed record U.S. crude exports, a hopeful
sign for demand, even as crude stocks rose. The U.S. dollar
weakened in early trade on hopes that interest-rate hikes may
become less aggressive.
"It appears that recession concerns have abated lately but
continuously betting on healthy economic 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,
or 0.5%, to $88.32.
Worries about Chinese demand 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 confidence. China is the world's biggest
energy consumer.
"Concerns that China's muddled economic policies 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, it remained pinned near October's trough. Hopes
that the U.S. Federal Reserve will shift to less aggressive
interest rate 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 assets.
Crude has slumped on 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 to be effective.
(Additional reporting by Yuka Obayashi in Tokyo; Editing by Mike
Harrison, Kirsten Donovan)
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