Oil soars, poised to end week higher despite economy concerns
Last updated on: 16 December,2022 08:45 am
Both benchmarks are poised to end the week more than 7 per cent higher.
(Reuters) - Oil prices soared in early Asian trade on Friday after falling 2 per cent in the previous session on central bank interest rates hikes, and is poised to end the week higher after a series of positive oil demand forecasts.
Brent crude futures rose 36 cents or 0.4% to $81.57 per barrel by 0109 GMT. West Texas Intermediate futures rose 25 cents, or 0.3%, to $76.36 per barrel.
Both benchmarks are poised to end the week more than 7% higher.
The market found support this week from International Energy Agency projections of Chinese oil demand recovering next year after a 2022 contraction to 400,000 barrels per day (bpd). The agency raised its 2023 oil demand growth estimate to 1.7 million bpd.
OPEC on Tuesday stuck to its forecasts for global oil demand growth of 2.55 million bpd this year and 2.25 million bpd in 2023 after several downgrades, saying that while economic slowdown was "quite evident" there was potential upside such as from a relaxation of China s zero-COVID policy.
In bearish demand news, The U.S. Federal Reserve indicated it will raise interest rates further next year, even as the economy slips toward a possible recession.
On Thursday, the Bank of England and the European Central Bank raised interest rates to fight inflation.
A stronger dollar makes oil more expensive for those using other currencies.