Oil steady on China demand hopes, after weekly gain By Reuters

© Reuters. FILE PHOTO: An aerial view shows a crude oil tanker at an oil terminal off Vaidao Island in China’s Zhoushan, Zhejiang province January 4, 2023. China Daily via Reuters

by Shariq Khan

BENGALURU (Reuters) – Oil prices recovered from a brief selloff to gain more than $1 a barrel on Friday and end the week higher, driven by renewed optimism around demand from top oil importer China. Went.

Futures rose $1.08, or 1.3%, to $85.83 a barrel. US West Texas Intermediate (WTI) crude futures were up $1.52, or 1.9%, at $79.68 a barrel. Both the benchmarks posted their highest closing levels since February 13.

Prices fell more than $2 a barrel following a media report that the UAE had an internal debate on leaving OPEC and pumping more oil. Prices jumped again when two sources with direct knowledge told Reuters the report was “far from the truth”.

Brent and WTI posted their third biggest weekly percentage gain this year as strong economic data from China raised hopes of a rise in oil demand.

“Crude has been on a rollercoaster today, charging lower and rocketing higher before reversing sharply on rumors of the UAE leaving OPEC+, as that rumor was disputed, and crude Ridden the risk-on rally.”

China’s service sector activity expanded at its fastest pace in six months in February, and manufacturing activity also picked up there. China’s seaborne imports of Russian oil are set to hit a record high this month.

Sources told Reuters that China, the world’s top oil importer, is getting more ambitious with its 2023 growth target, aiming for 6%.

UBS analyst Giovanni Stanovo said stocks rose for a 10th straight week in the oil market and record US crude exports supported prices more.

The dollar weakened, and analysts polled by Reuters expect the greenback to remain under pressure over the next 12 months, making dollar-denominated oil cheaper for holders of other currencies.

The European Central Bank was still sending aggressive signals, with ECB Governing Council member Pierre Wunsch saying it could raise its key interest rate to 4% if inflation remains high.

Rate this post

Leave a Comment