FX.co ★ Oil Prices Rise On China Demand Hopes

Oil prices traded higher on Tuesday amid hopes of Chinese stimulus and expectations that crude oil inventories in the U.S., the world's biggest crude consumer, will fall again.

Benchmark Brent crude futures rose 0.6 percent to $84.66 a barrel, while WTI crude futures were up 0.7 percent at $80.29.

China's consumer inflation hit an 18-month low in March and producer price deflation deepened further, creating room for the country's central bank to potentially ease its monetary policy.

Hopes of more energy demand from China also supported prices.

Reuters reported that Chinese airlines were undertaking the biggest hiring drives inn more that three years to cope with an expected surge in travel demand this year after the relaxation of the country's anti-COVID restrictions.

Elsewhere, India's fuel consumption jumped to a record high in March, data showed on Monday.

Consumption of fuel in the world's third-biggest oil consumer rose by 5 percent from a year earlier to 4.83 million barrels per day (20.5 million tons), the highest recorded in data going back to 1998 from the Indian Oil Ministry's Petroleum Planning and Analysis Cell.

Traders await inventory data from the American Petroleum Institute later in the day for further direction.

The industry body reported a drop of over 4 million barrels in U.S. crude stockpiles last week.