Oil Prices Stable, Heading for Weekly Gain

LONDON–Oil prices remained steady Friday as renewed optimism about China’s demand recovery outweighed recession fears over U.S. rising crude inventories and tightening European monetary policy.

Brent crude futures rose by 4 cents or 0.05 percent to $84.79 per barrel at 0936 GMT. U.S. West Texas Intermediate crude futures rose 2 cents or 0.03 percent to $78.18

Brent rose by around 1.9 percent this week while WTI is on track for a gain if 2.4 percent.

Stephen Brennock, a PVM analyst, stated that those who are betting on higher oil prices “are basking in the afterglow from the positive macro data coming out of China.”

China’s services sector grew at its fastest pace in six month in February, as demand was revived by the lifting of COVID-19 strictures, according to a private sector survey.

China’s manufacturing activity also increased last month at its fastest pace in over a decade, confirming expectations of a fuel demand rebound. China’s record-breaking seaborne imports this month of Russian oil will be set.

The market generally ignored a 10th consecutive week in which crude stock build in the United States. However, record-setting U.S. crude exports kept the increase lower than in recent weeks.

Prices were also buoyed by Russia’s March plan to increase oil export cuts.

Reuters polled analysts to predict that the dollar will weaken over the next 12 months. This would make oil in dollar-denominated dollars more affordable for holders of other currencies.