Oil prices rebounded from a brief dip to rise by $1 a barrel on Friday and ended the week higher, driven by renewed optimism surrounding demand from top oil importer China.
Brent futures were up $1.08, or 1.3%, to settle at $85.83 a barrel. US Crude Oil (WTI) closed at $79.68 a barrel, up $1.52, or 1.9%.
Both benchmark contracts posted their highest closing levels since Feb. 13.
Prices fell more than $2 a barrel earlier in the session after a media report said the UAE held internal discussions about leaving OPEC and increasing oil production.
Prices rebounded when two sources with direct knowledge told Reuters the report was “far from the truth”.
Brent and WTI posted their third-biggest weekly percentage gains this year as strong Chinese economic data fueled hopes for oil demand growth.
“Oil is on a rollercoaster ride today, trading lower on rumors that the UAE would leave OPEC+ before reversing sharply and skyrocketing when that rumor was disputed, and oil surged aboard the risky rally,” said Matt Smith, an analyst at Kpler.
China’s service sector activity in February expanded at the fastest pace in six months, and manufacturing activity also rose.
Maritime imports of Russian oil from China are expected to reach a record this month.
China, the world’s biggest oil importer, is getting more ambitious with its 2023 growth target of up to 6%, sources told Reuters.
Source: CNN Brasil
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