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Oil price goes up
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Oil price goes up

Oil prices experienced an increase, driven by signs of reduced supplies and economic boost in the slowly recovering Chinese market. At 1134 GMT, Brent futures surged by $1.02, reaching $80.66 per barrel, and U.S. West Texas Intermediate (WTI) crude rose $1, reaching $76.65 per barrel. Commerzbank analysts noted that the supply deficit anticipated for the second half of the year is now supported by concrete data. They pointed out that China and India's import of crude oil from Russia hit a record high in June, reinforcing the supply constraints. However, the buying interest from India might wane due to diminishing discounts and payment issues.

 Furthermore, Russia, in line with Saudi Arabia, decided to decrease output for August, which could potentially prompt China and India to seek oil from other suppliers, thereby driving oil prices higher. In the United States, crude inventories have declined, bolstered by increased crude exports and higher refinery utilization, according to the Energy Information Administration (EIA) report on Wednesday. This tightening in supply is evident in the inventories, as observed by analysts from ANZ Bank. Investors responded positively to the stimulus measures aimed at revitalizing China's sluggish economy. The latest GDP growth figures from the second quarter indicate that it might fall short of the government's 5% annual growth target in the world's second-largest oil-consuming nation.

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