Oil prices rose on international markets, supported by optimism about Chinese demand, continued output cuts by major producers, and Russia’s plans to cut supply.
According to the latest oilprice.com data, the price of Brent oil is currently at $83.81, while WTI oil is trading at $77.01.
The prices of barrels fell by two dollars on the markets on Friday and by four percent in the week after the official data of the US government showed higher crude oil and gasoline stocks, the Mina agency reports.
The OPEC+ group of producers, which brings together OPEC and allies, including Russia, agreed in October to cut oil production targets by two million barrels per day by the end of this year.
Separately, Russia plans to cut oil production by 500,000 barrels a day in March, or about five percent of its production, after the West imposed a price ceiling on Russian oil and oil products.
Oil imports reach record levels
Furthermore, at the end of the week, the market focused on messages from the US central bank, the Fed, about raising interest rates. Two Fed officials warned on Thursday that the bank must raise borrowing costs further to bring inflation down to the desired level.
Analysts interpreted their statements as announcing a more aggressive increase in interest rates, fearing for the economy and oil demand. Hints of abundant supply represented a barrier to prices.
However, analysts expect China’s oil imports to reach record levels this year to meet increased demand for transportation fuels and as new refineries are set to start.
National Australia Bank’s Baden Moore said we continue to see the reopening and recovery of China and global demand for jet aircraft fueling price growth.
After the European Union embargo, China and India have become the main buyers of Russian crude oil.
The Organization of Petroleum Exporting Countries announced in a separate report that on Friday, the price of a barrel of the oil basket of its members fell to 81.73 dollars compared to the previous day.
