he worst yearly start in more than three decades, oil prices recovered on Thursday as investors took advantage of the decline to buy futures in the expectation that long-term fuel demand will remain stable. 

The recovery came after two days of precipitous declines to begin 2023 as investors fretted about a potential global recession and the short-term economic indicators in the world's two biggest oil consumers, the United States and China, appeared shaky. 

At 01:36 GMT, Brent crude futures were up 59 cents to $78.43 a barrel, while U. S. The price of a barrel of West Texas Intermediate crude futures increased by 69 cents to $73 point 53. 

According to Refinitiv Eikon data, the declines in Brent and WTI over the previous two sessions of more than 9 percent were the largest two-day losses at the beginning of a year since January 1991. 

Prices in the previous session were impacted by US economic data. 


U. S. According to the Institute for Supply Management (ISM), manufacturing shrankfurther in December, falling for a second consecutive month to 48.4 from 49.0 in November. This was the lowest reading since May 2020. 

At the same time, a U.S. S. There are worries that the Federal Reserve will use the tight labor market as justification for maintaining higher interest rates for longer after Labor Department data showed job openings declined less than anticipated. 

U. S. According to market sources citing American Petroleum Institute data, crude oilinventories increased last week by 3.3 million barrels, gasoline stocks increased by 1.2 million barrels, and distillate stocks decreased. [EIA/S]. 

On Thursday, the government is required to release inventory data. 


Despite the fact that no new coronavirus variants have been discovered in China, data revealed that the nation had understated the number of fatalities associated with its most recent, widely disseminating outbreak, according to World Health Organization officials. 

The uncertainty surrounding crude prices has increased due to worries about the potential for economic disruptions as COVID-19 moves through China, the world's largestoil importer. 

In anticipation of weak domestic demand, the Chinese government increased export quotas for refined oil products in the first batch for 2023.