SINGAPORE, Jan 12 (Reuters) - Oil prices traded mostly flat on Thursday, giving up gains made earlier in the day, as optimism over China's demand outlook was tempered by caution ahead of upcoming inflation data from the United States.
Both benchmarks had risen 3% in Wednesday's session, boosted by hopes for an improved global economic outlook and concern over the impact of sanctions on Russian crude output.
"China is speeding up stockpiles for crude oil ahead of the Lunar New Year holiday, as the demand outlook has been improved amid a U-turn in its COVID policy," said Tina Teng, an analyst at CMC Markets.
Upcoming U.S. inflation data, however, is a key risk factor for oil, CMC Market's Teng added.
An international price cap imposed on sales of Russian crude took effect on Dec. 5.