08:55 AM EST, 03/06/2024 (MT Newswires) -- Oil prices moved higher early on Wednesday after a report showed a smaller than expected rise in US oil inventories last week, offsetting concerns over the health of China's economy.

West Texas Intermediate crude oil was last seen up US$1.03 to US$79.18 per barrel, while May Brent crude, the global benchmark, was up US$0.79 to US$82.83.

The rise comes after the American Petroleum Institute's weekly survey showed US oil inventories rose by 423,000 barrels last week, under consensus expectations for a 2.6-million barrel increase, according to Investing.com. Gasoline and distillate inventories fell more than expected. The Energy Information Agency will release official data later on Wednesday morning.

The lighter than expected rise came as traders mull a weakening Chinese economy, after the No.1 importer again steered clear of stimulus measures amid a debt crisis in its real-estate sector as it set a 5% growth goal for its gross domestic product this year.

"China's GDP growth target remained modest and none of the announcements so far have been able to spark optimism," Saxo Bank noted.