Oil prices rise amid expectations of demand from China and a decline in U.S. inventories

Reuters reports that oil prices rose on Wednesday after industry data showed a sudden drop in U.S. crude inventories, indicating continued demand despite a significant increase in interest rates holding back global economic growth.

Bourses rose about 2 percent in the previous session amid a weakening U.S. dollar and after unverified reports on social media that the Chinese government is considering easing COVID-19 restrictions starting in March 2023. 

Market sources referring to figures from the American Petroleum Institute said U.S. crude oil inventories fell by approximately 6.5 million barrels in the week which ended Oct. 28, sending another positive sign for demand.

China's COVID-19 policy played a key role in keeping oil prices in check, as persistent restrictions led to slower growth and lower demand for oil in the world's second-largest economy.

Analysts at ANZ Research stressed that changes in China's COVID-19 policy would impact oil demand.