New york: Oil prices rose on Wednesday, thanks to expectations of sustained demand in the United States and China, the world’s largest oil users, amid an improved economic outlook. Brent crude futures rose 29 cents, or 0.42%, to $69 a barrel by 01:05 GMT. U.S. West Texas Intermediate (WTI) crude futures rose 40 cents, or 0.6%, to $66.92.

According to National Iraqi News Agency, this follows a two-day decline as the market ignored the possibility of supply disruptions following U.S. President Donald Trump’s threat to impose tariffs on Russian oil buyers. Prices moved in a fairly narrow range as signs of sustained demand due to increased summer travel in the Northern Hemisphere competed with concerns that US tariffs on trading partners would slow economic growth and fuel consumption.

Forecasts from major oil producers point to improved economic growth in the second half of the year, while Chinese data showed that the country’s growth is continuing. “Strong seasonal demand is currently providing momentum for o
il prices, as summer travel and industrial activity peak,” analysts at the London Exchange Group said in a note.

“Increased gasoline consumption, particularly in the US during the Fourth of July holiday, indicated strong fuel demand, helping to offset downward pressure from high inventories and tariff concerns.” Chinese data showed growth slowed in the second quarter, but not as much as previously feared, partly due to early shipments of exports in anticipation of US tariffs. This eased some concerns about the economy of the world’s largest crude oil importer.

In addition, the Organization of the Petroleum Exporting Countries (OPEC) forecast in a monthly report on Tuesday that the global economy will perform better in the second half of the year, boosting oil demand prospects. The report indicated that India, China, and Brazil are performing better than expected, while the United States and the European Union are experiencing a recovery since last year.