Oil prices retreated after increasing for 2 sessions

Oil prices retreated after hitting a two-session high, with investors again expressing concern over a possible U.S. recession and lower oil demand.

Brent oil prices retreated by 19 cents, or 0.22%, to $87.15 per barrel. U.S. West Texas Intermediate fell 11 cents or 0.12%.

Both benchmarks advanced 2% to record highs on Wednesday, as a drop in U.S. inflation raised hopes the Federal Reserve will hold off on raising interest rates.

Previous tightening, which pushed interest rates to their highest level since 2007, raised concerns that the Fed’s focus on curbing inflation could dampen economic growth.

US CPI advanced 0.12% last month, below economists’ expectations for a 0.24% rise and falling from a 0.4% rise in February.

Markets pared a small rise in U.S. crude inventories.

Crude oil inventories advanced by 597,000 barrels last week.

Still, the oil market rallied two weeks ago after OPEC and allies such as Russia agreed to cut output.

China’s crude oil imports rose to a record 22.5% year-on-year last month.

According to the General Administration of Customs, crude oil imports in March amounted to 52.32 million tons or 12.32 million barrels per day.

Analysts pointed to a clear boost in exports of refined fuel products as the main source of the jump in crude oil imports. Refined product exports advanced by 35.12% to 5.55 million tons, compared to 4.12 million tons in the same month of 2022.

Total crude oil imports amounted to 136.63 million tons, up 6.72% from 127.92 million tons in the same period last year.

China imported 8.91 million tons of natural gas last month, up 11.23% from 8.1 million tons a year ago. The total natural gas import in the first quarter amounted to 26.72 million tons.