Crude oil prices steady as strong China’s economy data offsets US rate worries

Crude oil prices were little changed on Tuesday as upbeat economic data in number two oil consumer China offset concerns that possible increases in US interest rates could dampen growth in the top consuming country.

Brent crude settled 1 cent, or 0.01 per cent, higher at $84.77 a barrel, while West Texas Intermediate crude futures closed up 3 cents, or 0.04 per cent at $80.86.

China's economy grew by a faster-than-expected 4.5% in the first quarter while oil refinery throughput rose to record levels in March, data showed.

The prospect of another US interest rate hike remained a drag on sentiment. Traders expect the Federal Reserve to raise rates by 25 basis points at its May meeting.

Crude was also pressured by the Iraq federal government and Kurdistan Regional Government (KRG) taking a step towards a resumption in northern oil exports from the Turkish port of Ceyhan after they were halted last month.

The dollar eased on Tuesday after the upbeat China data. A stronger dollar makes commodities priced in the US currency more expensive for buyers holding other currencies.

Crude prices posted gains for the last four weeks, a streak not seen since June 2022.

Late in the afternoon, market sources citing American Petroleum Institute figures told US crude oil stocks fell by about 2.68 million barrels, while fuel inventories also fell last week.

Analysts forecast a drawdown of 1.1. million barrels in crude stockpiles last week, as well declines in gasoline and distillates.

The US government will release its stockpile data on Wednesday morning.

With Reuters Inputs