Oil prices tick up following strong Chinese import data

Oil prices ticked up on Tuesday after strong Chinese import data but markets broadly shrugged off Middle East tensions which have so far not disrupted oil supply.

Brent crude oil futures were up 25 cents, or 0.4 percent, at $63.53 a barrel by 0855 GMT while US crude oil futures gained 14 cents, or 0.2 percent, to $59.84 a barrel. Both contracts are on course for their fifth session of sub-1 percent change.

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China’s exports grew at a robust pace in March in yet another boost to the nation’s economic recovery as global demand picks up amid progress in worldwide COVID-19 vaccinations, while import growth surged to the highest in four years.

Crude oil imports into China jumped 21 percent in March from a low base of comparison a year earlier as refiners ramped up operations.

Also supporting prices, US crude oil stockpiles were expected to have fallen last week for a third straight week, while distillate and gasoline inventories likely grew, a preliminary Reuters poll showed on Monday.

Still, US oil output from seven major shale formations is expected to rise for a third straight month, the US Energy Information Administration said on Monday.

“The rise in geopolitical tension will only have a notable bullish impact on oil prices if it is coupled with actual physical supply disruption,” PVM analysts said in a note.

The slow rate of vaccinations in Europe and anticipation of additional supply of oil from Iran in the coming months capped price gains.

Read more: OPEC+ agrees to gradually boost oil output in coming months