Oil prices rise on strong US and China demand expectations

Oil prices increased on Wednesday due to expectations of steady summer demand in the United States and China, the world's top oil consumers. Analysts at LSEG noted that growing vacation travel and industrial activity are supporting prices, though new US tariffs may limit economic growth and reduce fuel consumption.

After two days of declines, Brent crude rose 0.2% while WTI gained 0.5%. The market has begun considering potential supply disruptions from Russia, which it had previously overlooked. Meanwhile, China reported an 8.5% year-on-year increase in oil refining during June, pointing to recovering demand.

However, Priyanka Sachdeva of Phillip Nova believes the price rise is temporary, driven more by technical factors than market fundamentals. OPEC maintains a more positive view, forecasting improved economic conditions in the second half of the year, particularly in China, India and Brazil.