Oil prices suffered a decline in early trading on Friday, but they are heading to close the week with a strong rise, thanks to positive economic data from the United States and China and a decline in US crude inventories.
Price action
Brent crude futures fell 32 cents, or 0.39 percent, to $82.12 per barrel by 0115 GMT, while US West Texas Intermediate crude fell 41 cents, or 0.5 percent, to $76.95.
Brent crude is heading to end the week up 4.5 percent, while the US standard crude is heading for weekly gains of 4.8 percent. The two raw materials are heading up for the second week in a row.
Sources said that Chinese officials asked their Iranian counterparts to help curb Houthi attacks in Yemen on ships in the Red Sea, otherwise trade relations with Beijing would suffer damage, which represented a step that helped allay fears of possible disruption to supplies.
This week, prices received support from a larger-than-expected decline in US crude inventories, in addition to strong economic data from the United States and China, and fears of supply disruption after a Ukrainian drone attack on an oil refinery in southern Russia.
The Energy Information Administration said Wednesday that US crude oil inventories fell by 9.2 million barrels after winter weather affected crude production.
On the demand side, data showed that the US economy grew more than expected in the fourth quarter, and China announced a significant reduction in banks’ reserve requirements with the aim of stimulating growth.
2024-01-26 03:32:24
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