Oil prices rose about 1% on Friday’s settlement for a second week in a row, boosted by China’s upbeat economic outlook, which fueled expectations of increased demand in the world’s second-largest economy.
And the International Energy Agency said last Wednesday that lifting restrictions put in place to contain the Covid-19 outbreak in China would push global demand to record levels this year, a day after the Organization of the Petroleum Exporting Countries ” OPEC expected Chinese demand to recover in 2020. 2023
Brent crude rose by $1.47, equivalent to 1.7% in the calculation, to $87.63 per barrel. U.S. oil prices rose 98 cents, or 1.2%, to $81.31 a barrel, according to Reuters.
During the week, Brent crude rose 2.8%, while the US benchmark rose 1.8%.
Oil prices also received support on hopes that the US central bank will soon move to raise interest rates at lower rates, which could improve the US economic outlook.
Most economists polled by Reuters believe the Fed will end its monetary tightening cycle after raising 25 basis points at each of the next two policy meetings, and then likely keep interest rates flat for at least until the end of the year.
Oil prices rose even though U.S. oil inventories data this week showed an increase of 8.4 million barrels in crude inventories in the week ended January 13 to about 448 million barrels, the highest level since June 2021.