Oil hits $70 as the world’s largest oil importer, China, show signs of an increase in demand for Oil.

Oil prices rose earlier today thanks to China’s rapid economic recovery. According to economic data, China’s economic recovery accelerated at the start of 2021, thus boosting investors confidence in the possibility of an increase in the demand for energy in China, the world’s largest oil importer.

Brent crude futures for May gained 57 cents, or 0.8%, to $69.79 a barrel by 07:48 GMT while U.S. West Texas Intermediate crude gained 56 cents, or 0.9%, to $66.17 a barrel.

Beating market expectations, China’s industrial output growth quickened in January-February. Its daily refinery, throughput data, also rose 15% in January-February.

Supporting the growth in the price of Oil is China’s heavy industry which has shown immense growth. Its production of cement, steel, coal and aluminium recorded double-digit growth compared with 2019’s pre-COVID pandemic levels. (P.S: China needs the energy to produce and distribute all these materials).

Further supporting prices, top oil exporter Saudi Arabia has cut the supply of April-loading crude to at least four north Asian buyers by up to 15% while meeting the normal monthly requirements of Indian refiners.

The reduction in supply occurred as the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) decided earlier this month to extend most of its supply cuts into April.Oil is now heading at $70 per barrel, do you have it in your trading portfolio?