Oil is rising with the support of strong US economic data

Oil prices rose slightly on Friday, extending their gains for the second session in a row, supported by strong US economic data and mounting hopes for a recovery in demand after the reopening of the Chinese economy.

By 0113 GMT, Brent crude futures were up 30 cents, or 0.3 percent, at $87.66 a barrel. West Texas Intermediate crude futures rose 21 cents, or 0.3 percent, to $81.22 a barrel.

Both benchmarks rose more than 1% on Thursday, and Brent is on track for its second weekly gain if gains continue.

The improvement in US GDP and inflation data gives a glimmer of hope that the Federal Reserve may slow down the pace of interest rate hikes, reducing fears of contraction in economic activity and the consequent demand for oil.

Meanwhile, the Centers for Disease Control and Prevention said this week that the number of severe COVID-19 cases in China fell 72 percent from a peak this month, while the number of hospitalized patients fell 79 percent. These numbers indicate the return of the Chinese economy to normal, which reinforces expectations of a recovery in oil demand.