Market Overview

Oil prices climbed in Asian trade on Thursday due to a significant drop in U.S. inventories, which raised hopes for sustained demand in the world’s largest fuel consumer. Bargain buying helped oil prices rebound from multi-month lows, but the rally is losing momentum.

Negative economic data from China, particularly regarding crude imports, has stymied further gains. Both oil contracts have faced sharp losses recently due to fears of a potential U.S. recession impacting demand.