Growing confidence in the recovery of the Chinese economy and mounting evidence of a cooling rate United States inflation forward in support to oil prices Raw for the sixth day.
West Texas Intermediate crude rose by 1.3%, settling above $78 a barrel, in the longest streak of daily gains since February.
The US Consumer Price Index fell 0.1% in December, its first monthly decline since 2020. The report boosted the performance of risky assets as dealers bet that the US Federal Reserve will slow the pace of interest rate increases as inflation cools.
US inflation continues to slow, giving way to ease the pace of rate hikes
This good outlook for the US comes in addition to increasing optimism about the recovery of China’s economy.
Beijing issued a slew of import quotas this week and Chinese oil companies have increased purchases of US and West African crudes in recent days.
AOil crowns the longest series of rise since October, supported by China’s purchases
The recent rally higher in oil prices has gained steam after a volatile start to the year. Analysts remain optimistic about the long-term outlook.
Goldman Sachs said on Wednesday that it expects crude oil to reach $110 a barrel by the third quarter of this year if China succeeds in reopening its economy, while Morgan Stanley expects a supply shortage during the second half of the year.
