25.4 C
New York
Wednesday, August 17, 2022

Crude Oil Prices Settle Higher But Fail to Avoid Weekly Loss

Crude Oil Prices Settle Higher But Fail to Avoid Weekly Loss© Reuters.

Investing.com – Crude oil prices settled higher on Friday as stronger Chinese crude demand and fears over possible supply disruptions offset signs of rising US output.

On the New York Mercantile Exchange for January delivery rose 1.2% to settle at $57.36 a barrel, while on London’s Intercontinental Exchange, gained 1.6% to trade at $63.19 a barrel.

Crude futures started the session on the front foot buoyed by data showing China’s crude oil imports rose to 9.01 million barrels per day (bpd) raising expectations that solid global demand growth would continue to support rebalancing in markets.

That came ahead of the reports showing the number of oil rigs operating in the US rose for the third consecutive week, according to the oil field services company Baker Hughes.

This week’s U.S. rig count, an early indicator of future output, ticked up by two oil rigs to a total of 751, oilfield services firm Baker Hughes reported on Friday.

Signs of growing US output did little deter the current bullish sentiment on oil amid fears over supply disruption after One of Nigeria’s two main oil unions on Thursday threatened to launch a nationwide strike from Dec. 18.

Oil futures ended the week negative following a nearly 3% fall on Wednesday following the release of inventory data which pointed to possible demand weakness after gasoline inventories rose more than expected.

Morgan Stanley said, however, oil prices were entering a phase of “gradual recovery” as demand for petroleum based products continued to outpace its historical average growth ahead of the winter peak period.

Also supporting crude prices was ongoing investor expectations that OPEC compliance with the deal to curb output would remain firm, reducing oil supplies to OPEC’s five year-average.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles


Please enter your comment!
Please enter your name here

Stay Connected

- Advertisement -

Latest Articles

Popular Articles