April 14, 2023 (MLN): Oil prices rose in the early Asia trading session on Friday, supported by signs of lower Russian output and tighter supplies.
Brent crude climbed 0.09% to $86.06 per barrel, while West Texas Intermediate crude (WTI) rose 0.11% to $82.48 per barrel.
The increase comes after both benchmarks fell by more than 1% in the previous session.
Analysts from ANZ Bank noted that Russian exports are showing signs of weakening, as production reportedly curtailed by 700,000 barrels per day (bpd), Reuters reported.
However, the market is still waiting for the International Energy Agency’s (IEA) monthly oil market report, due later on Friday, to clarify the global demand outlook.
According to recent trade data from China, the country’s crude oil imports surged by 22.5% in March compared to the same period last year. This news has been received positively, indicating a potential boost in China’s economic recovery.
Organization of the Petroleum Exporting Countries (OPEC) latest report released on Thursday presents a different perspective, highlighting the downside risks in summer demand due to weaker growth, tighter monetary policy, and instability in the global financial sector.
JP Morgan analysts noted that global demand for mobility fuels has increased by 2.2 million bpd during the reference week ending April 8, compared to year-ago levels. The surge in demand is attributed to the rebound of China and other Asian countries, accounting for two-thirds of global mobility fuel demand growth, Reuters reported.
WTI and Brent, both benchmarks for crude oil prices, have recorded gains this week, with a 2.55% and 1.73% increase, respectively. These benchmarks are heading for their fourth straight week of gains.
The weakening U.S. dollar, which makes dollar-denominated oil cheaper for investors holding other currencies, has also contributed to the rise in oil prices.
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Posted on: 2023-04-14T11:13:24+05:00
