World oil prices capped off an extremely volatile week of $4 swings with solid gains Friday, amid more encouraging news on China’s economic soft landing and a jump in US consumer sentiment.
New York’s main contract, West Texas Intermediate (WTI) for December delivery, added 98 cents at $86.07 a barrel.
Brent North Sea crude for December delivery rose $2.15 to $109.40 a barrel in London trade.
The gains left the WTI price $1.21 higher than a week earlier, while Brent put on $3.72 a barrel.
The rise came after Chinese economic data showed a pickup in activity just as the country’s Communist Party meets to anoint a new generation of leaders.
Output from Chinese industry rose 9.6 percent in September, and other numbers released showed improvement in retail sales, fixed investment and inflation.
The data added to signs that China’s economy, the world’s largest consumer of energy, is rebounding after growth slowed for seven straight quarters.
On top of that, the University of Michigan’s US consumer confidence index increased to its best level since July 2007.
“Swings in risk sentiment are translating into choppiness in oil markets, with prices rebounding again Friday after better than expected US consumer confidence data,” said BMO Capital Markets.
“However, for the week WTI is only marginally higher while Brent remains strong on supply issues.”
Eric Bickel, of the Summit Energy unit of Schneider Electric, said that an uptick in worries over the Middle East after Iran tried to shoot down a US drone also helped prices rise.
Source: AFFP
