Oil ends 2 per cent higher over the week amid China demand outlook

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Oil ends 2 per cent higher over the week amid China demand outlook

Both US WTI (West Texas Intermediate) and UK crude oil futures’ prices rose modestly on Friday with both benchmarks winding up the week with a percentage gain of over 2 per cent amid China demand outlook. In the matter of the fact, Friday’s gain in both US WTI and UK crude oil prices was almost entirely galvanized by the prospect of China reopening, as expectations remained high over a rapid increase in global fuel demand.

On top of that, the 14-member OPEC (Organization of Petroleum Exporting Countries) had forecasted last week that China’s oil demand would highly likely to grow by a substantial scale this year, while a report from Paris-based IEA (International Energy Agency) echoed the same tone, eventually bolstering investors’ morale.

Aside from that, a decline in American currency following a flurry of dismal data stoking possibilities of a less-hawkish monetary policy from the US Fed, had helped the oil benchmarks end higher. Conventionally, a decline in US Dollar followed an upward spiral in crude oil futures’ prices.

In tandem, US oil rig count fell by the most since September 2021, US drilling service provider Baker Hughes had reported.

Oil rises for a second straight week

Citing statistics, as of Friday’s commodity market wind-down, UK crude futures’ prices rose 1.7 per cent to $87.63 per barrel, while US WTI crude futures’ prices settled 1.2 per cent higher to $81.31 per barrel.

Over the week, UK crude scored a 2.8 per cent increase, while US WTI crude oil futures’ prices rose by 1.8 per cent. Meanwhile, expressing an out and out optimism over China reopening, an analyst at broker Avatrade, Naeem Aslam said, “Many traders believe it is highly likely that we are going to see higher demand coming from China as it continues to dismantle its COVID policies”.