By Gina Lee
Investing.com – Oil prices rose Wednesday morning in Asia with investors weighing supply tightness of gasoline against the possibility of economic slowdowns and continued lockdowns in China.
Brent oil futures rose $1.26, or 1.14%, to $111.95 a barrel by 1:28 AM ET (5:28 AM GMT) and WTI futures were up 1.22%, to $111.11.
Oil inventories in the U.S. rose last week but gasoline stocks fell, according to American Petroleum Institute (API) data released Tuesday. Inventories of crude increased by 567,000 barrels for the week to May 10, that was a surprise increase and contrasted with a 2.4 million barrel draw the week earlier. Analysts had been expecting a decrease in inventories of 690,000 barrels.
However, gasoline inventories fell by 4.2 million barrels, which continued to stoke fears of rising gas prices and the impact of those prices on inflation. The drop in gasoline stocks and likely increase in prices comes at an inconvenient time, with the busy U.S. driving summer season about to start.
Distillate stocks also dropped by 949,000 barrels.
Data on stockpiles from the U.S. Energy Information Administration is expected on Wednesday.
In China, Shanghai continued a slow move towards opening but Beijing stepped up quarantine efforts as it continues to battle a month-old COVID outbreak.
The International Energy Agency (IEA) warned this week that prices are set to continue surging unless demand from China remains weak in the months ahead. According to Platts, demand for oil from China fell 11.5% year on year in April. That could change, however, if lockdowns in various cities begin to ease.