Expected Chinese Rising Demand Pushes Oil prices Higher

According to the International Energy Agency, lifting COVID-19 restrictions in China is expected to increase global oil demand to a record high this year.

WTI crude oil futures edged higher on Friday, putting the market in a position to post a second straight weekly gain. The catalysts triggering this price action obviously include rising economic hopes that China could boost fuel demand in the reopened big economy.

March WTI crude oil trades at $81.64, up $1.03 or +1.28% versus Thursday’s closing price at $80.61 per barrel. On Thursday also, the US Oil Fund ETF (USO) settled at $70.59, up $1.08 or +1.55%.

Optimistic remarks by the International Energy Agency (IEA) and OPEC benefited oil prices on Friday. Hopes for a softer tone from the Fed are also providing support. According to a Reuters poll, experts expect the Fed to increase rates by 25 basis points two more times before pausing.