Oil prices edged ahead for a second session on Friday, supported by stronger-than-expected US economic growth and hopes for a quick recovery in Chinese demand, as COVID-19 cases and deaths fell from last month’s peaks.
Brent futures gained 30 cents, or 0.34%, at 0321 GMT to $87.77 a barrel, while WTI crude rose 34 cents or 0.42% to $81.35 per barrel.
Both benchmarks gained more than 1% on Thursday.
Oil may not make any major moves until the end of the week as many traders will wait to see what the next week’s OPEC+ virtual meeting on production and the FOMC’s decisions will be.
OPEC+ delegates will meet next week to review crude oil production levels, with strong demand for jet fuel and diesel providing steady support for crude oil prices. The U.S. Federal Reserve will decide on another rate hike, as inflation cools and gross domestic product improves.
U.S. crude gains were limited by a 4.2 million barrel increase in inventories earlier this week at Cushing, the pricing hub for NYMEX oil futures.
Oil markets were bolstered by broad optimism on the first day of the Chinese stock market turnaround, as China’s reopening still plays a key role in boosting the demand outlook.
Critical COVID-19 cases in China are down 72% from their peak earlier this month, and daily deaths from COVID-19 patients in hospitals are down 79% from their peak, signaling the normalization of the Chinese economy and raising prospects for a recovery in oil demand.
