Oil prices rise $1 on China’s reopening optimism

Oil prices rose as much as $1 on Friday, extending gains from the previous trading session on hopes of a China demand boost and after data showed lower fuel inventories in the United States following a winter storm that hit during the year end.

Brent crude futures were 94 cents, or 1.2%, higher at $79.63 a barrel at 0345 GMT, after settling 85 cents stronger at $78.69 on Thursday.

U.S. West Texas Intermediate crude futures were up 91 cents, or 1.2%, at $74.58 a barrel. They had settled 83 cents higher at $73.67 in the previous session.

However, oil prices were on track to end the week lower, with both contracts down around 7% on a week earlier. Concerns about a possible global recession have weighed on trading sentiment.

“China’s reopening optimism, especially further stimulus measures to boost the property sector, is the main bullish factor for the oil prices, which has improved the demand outlook in the near year,” said Tina Teng, an analyst at CMC Markets.

This report’s information was first seen on REUTERS; to read more, click this link.