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Brent crude futures were up $1.21, or 1.41%, to $87.13 a barrel
by 0942 GMT, while U.S. West Texas Intermediate (WTI) crude
futures were up $1.36, or 1.7%, to $81.54. Both were at their
highest since early December.
China's economic growth slowed sharply to 3% in 2022, missing
the official target of "around 5.5%" and marking its
second-worst performance since 1976.
But the data still beat analysts' forecasts after China started
rolling back its zero-COVID policy in early December. Analysts
polled by Reuters see 2023 growth rebounding to 4.9%.
The lifting of COVID-19 restrictions in China is set to boost
global oil demand this year to a new record high, the
International Energy Agency (IEA) said on Wednesday, while price
cap sanctions on Russia could dent supply.
The IEA report followed expectations from the Organization of
the Petroleum Exporting Countries (OPEC) that Chinese oil demand
would grow by 510,000 barrels per day (bpd) this year after
contracting for the first time in years in 2022 due to COVID
containment measures.
But OPEC kept its 2023 global demand growth forecast unchanged.
Referring to China, PVM analyst Stephen Brennock said that "no
other single entity will play a more significant role in shaping
oil balances over the coming months".
Further support came from expectations of a drawdown in U.S.
crude stocks by around 1.8 million barrels in the week to Jan.
13, according to a Reuters poll. [EIA/S]
The poll was conducted ahead of reports from the American
Petroleum Institute, an industry group, due at 4:30 p.m. ET
(2130 GMT) on Wednesday.
On the supply side, oil output from top shale regions in the
United States is due to rise by about 77,300 bpd to a record
9.38 million bpd in February, the U.S. Energy Information
Administration (EIA) said on Tuesday.
(Reporting by Rowena Edwards in London, additional reporting by
Yuka Obayashi in Tokyo and Trixie Yap in Singapore; editing by
Jason Neely)
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