2023.01.2612:06:00UTC+00Crude Oil Prices Surge Ahead Of GDP Data

Crude oil benchmarks rallied emphatically ahead of the release of the fourth-quarter GDP numbers from the U.S. The GDP data is expected to be an important input for the Federal Reserve which would be meeting next week to review the monetary policy stance as well as interest rates.

Optimism surged as oil markets priced in the likely uptick in global demand following the relaxations in Covid curbs in China.

Hopes of the Fed slowing down on its rate hikes also added to the sentiment. The Fed is seen raising rates by only 25 basis points in the next review. The Dollar's retreat in the backdrop of the dovish bets lifted the Dollar-denominated prices of crude oil benchmarks.

Official data from the U.S. Energy Information Administration that showed a less-than expected build in inventories also helped to provide a bullish sentiment.

Brent Oil Futures for March settlement, which had closed Wednesday's trading at $86.12 surged 1.2 percent overnight to trade at its current level of $87.15. The day's high was $87.33.

West Texas Intermediate Crude Oil Futures for March settlement added 1.30 percent overnight to trade at $81.19. The benchmark which was at $80.15 at previous close has touched a high of $81.35 in the day's trade.