Oil Rises to a 4-Week High, on Strong Data From China And a Rebound in Demand

Oil prices extended their gains today, Friday, and are on a path of achieving a weekly profit of about 7%, with an improved outlook for crude demand and a strong economic recovery in China and the United States, which erased concerns about an increase in Covid-19 infections.

With the close of the Tokyo Stock Exchange, Brent crude futures rose 30 cents, or 0.5%, to $67.24 a barrel, after increasing 36 cents on Thursday.

U.S. West Texas Intermediate crude futures rose 28 cents, or 0.4%, to $63.74 a barrel, after rising 31 cents on Thursday.

A unit of the major oil and gas group, the China National Petroleum Corporation, said that China’s net imports of crude oil in 2021 are expected to grow by 3.4% this year compared to 2020 to about 11.2 million barrels per day.

China announced a record jump of 18.3% in economic growth in Q1 from a decline caused by the Coronavirus earlier last year, but the pace of growth is expected to moderate later in the year.

The longer prices remain high, he said, the more supplies are likely to return to the market, and that the risks of higher COVID-19 cases in places such as India and Europe could ultimately drive prices down.

Currently, the market is supported by a strong jump in US retail sales, a drop in jobless claims and indications that more cars are on the roads in the world’s largest economy.