Oil prices rose on Friday, finishing on the rise for the second week in a row, thanks to investors’ optimism about oil demand in China.
Refining companies in China increase their purchases of oil, hoping for an increase in energy consumption in the country after the lifting of quarantine restrictions, notes Bloomberg.
“Prices are rising amid continued optimism about China’s prospects,” said Charu Chanana, an analyst at Saxo Capital Markets in Singapore. – Signals that the country’s COVID-19 incidence has peaked reinforce expectations for a more sustained rise in demand.”
March Brent crude futures on London’s ICE Futures exchange stood at $86.26 a barrel by 7:15 a.m. Friday, up $0.1 (0.12%) from the previous session’s close. Those contracts rose $1.18 (1.4%) to $86.16 a barrel at the close of trading on Thursday.
The price of WTI futures for February at electronic trades of the New York Mercantile Exchange (NYMEX) increased by that time by $0.17 (0.21%) up to $80.5 per barrel. By closing of previous trades the cost of those contracts grew by $0.85 (1.1%) to $80.33 per barrel.
The previous day the US DOE data showed an unexpected and sharp increase of oil reserves in the USA. The indicator grew by 8.41 mln barrels up to 4483.02 mln barrels while experts interviewed by Bloomberg expected a 3 mln barrel decline of reserves.
Gasoline inventories rose 3.48 million barrels, compared to an expected increase of 2.4 million barrels.
“The inventory data was significantly different from what the market was expecting,” said Tyche Capital Advisors expert Tariq Zahir. – Nevertheless, we expect prices to rise further given the opening of the Chinese economy, the situation in Ukraine (Russia’s full-scale war against Ukraine – IF) and the fact that the US government needs to replenish the strategic oil reserve.”
