Oil Futures Settle Higher On Demand Hopes

Crude oil prices climbed higher on Friday amid optimism about the outlook for energy demand following China reopening its economy, and a top official saying the worst is over in the battle against Covid-19.

The dollar's drop from the day's highs contributed as well to the rise in oil prices.

West Texas Intermediate crude oil futures for March, the most active contract, settled with a gain of $1.03 or about 1.3% at $81.64 a barrel.

West Texas Intermediate Crude oil futures contract for February ended up $0.98 or about 1.2% at $81.31 a barrel on expiration day.

Brent crude futures were up $1.38 or about 1.6% at 87.54 a barrel a little while ago.

According to the data released by the Joint Organizations Data Initiative on Thursday, Chinese oil demand climbed by nearly 1 million barrels per day from the previous month to 15.41 million barrels per day in November 2022, the highest level since February, 2022.

Oil prices also benefited from comments from International Energy Agency head Fatih Birol that a rebound in Chinese economy and the Russian oil industry's struggles under sanctions could tighten energy markets this year.

For comments and feedback contact: editorial@rttnews.com

Market Analysis

Follow RTT