Oil prices rose on Friday on optimism about demand prospects thanks to signals of increased energy consumption in China and data on a weaker-than-expected slowdown in U.S. GDP growth.
Trafigura Group, one of the biggest commodity traders in the world, sees “great upside” for the oil market, noting the release of pent-up demand following the lifting of quarantine restrictions in China.
The price of March futures for Brent on London’s ICE Futures Exchange stood at $87.83 a barrel by 7:15 a.m. Friday, up $0.36 (0.41%) from the previous session’s close. Those contracts rose $1.35 (1.6%) to $87.47 a barrel at the close of trading on Thursday.
The price of WTI futures for March increased by $0.33 (0.41%) to $81.34 per barrel at electronic auctions of New York Mercantile Exchange (NYMEX). By the close of previous trading the cost of those contracts rose by $0.86 (1.1%) to $81.01 a barrel.
U.S. statistics released Thursday showed that the U.S. economy remains accommodative despite a significant tightening of monetary policy by the Federal Reserve (Fed).
According to preliminary data from the Commerce Department, fourth-quarter GDP rose 2.9 percent on an annualized basis after climbing 3.2 percent in the previous quarter. The consensus analyst forecast cited by Trading Economics suggested that economic growth had weakened to 2.6%.
