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Crude oil futures end sharply higher on Tuesday

12 Apr 2023 Evaluate

Crude oil futures ended sharply higher on Tuesday on optimism about additional Chinese economic stimulus. Traders reacted to soft inflation data from China. China's consumer inflation hit an 18-month low in March and producer price deflation deepened further, creating room for the central bank to potentially ease its monetary policy. Besides, oil prices also rose on hopes that the Federal Reserve might ease up on its policy tightening after a key U.S. inflation report this week. A U.S inflation report to be released on Wednesday is expected to help investors gauge the near-term trajectory for interest rates.

Benchmark crude oil futures for May delivery rose $1.79 or nearly 2.4 percent to settle at $81.53 a barrel on the New York Mercantile Exchange. Brent crude for June delivery surged $1.43 or 1.70 percent to settle at $85.61 a barrel on London's Intercontinental Exchange. 

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