2024.01.1719:28:00UTC+00WTI Crude Futures Settle Higher Ahead Of Inventory Data

Despite weak fourth-quarter GDP data from China, oil futures settled higher on Wednesday, ahead of weekly crude inventory data.

Concerns about the outlook for oil demand, and a firm dollar limited the uptick in oil prices.

West Texas Intermediate crude oil futures for February ended higher by $0.16 at $72.56 a barrel.

Brent crude futures were down $0.26 or 0.33% at $78.03 a barrel a little while ago.

Worries about the outlook for energy demand remain as China reported a 5.2% increase in fourth-quarter GDP, lower than the expected 5.3% rise.

Meanwhile, OPEC reiterated that demand will rise by 2.2 million barrels per day this year, over 2023. OPEC expects oil demand to rise by 1.8 million barrels per day next year.

The OPEC group produced 26.7 million barrels of crude oil per day in December, up from 26.628 million barrels of crude oil per day a month earlier.

Oil prices fell earlier in the day due to disappointing Chinese data and broader risk-off sentiment in the markets as traders pared back rate cuts, according to Craig Erlam, Senior Market Analyst at OANDA, UK & EMEA.

The weekly inventory data from the American Petroleum Institute (API) is due later today. The weely oil report from the Energy Information Administration (EIA) will be out Thursday morning.