OIL NEWS UPDATE

Oil prices experienced a significant rise on Friday, heading toward weekly gains driven by cold weather in Europe and the U.S. and China’s economic stimulus measures. Brent crude futures climbed by 0.9%, reaching $76.62 per barrel, while U.S. West Texas Intermediate rose 1.5% to $74.24. The price increases were supported by forecasts for colder temperatures in key regions, likely boosting heating oil demand.

Additionally, China’s efforts to stimulate its economy, including wage hikes for government workers and increased funding for business investments, helped alleviate concerns about weaker demand from the world’s largest oil importer. Analysts highlighted that these measures were reassuring for oil markets, which had previously been concerned about China’s economic fragility.

U.S. crude stockpiles also contributed to the price gains, as inventories decreased by 1.2 million barrels. However, while oil prices saw upward momentum, the strength of the U.S. dollar limited further gains. A stronger dollar, which is expected to remain strong due to higher interest rates and a resilient U.S. economy, could reduce oil demand by making it more expensive for foreign buyers.

Despite this, the overall sentiment remains positive, and oil prices are on track for a solid weekly gain, with Brent crude set to increase by 3.3% and WTI by 5%. Investors are closely monitoring the ongoing economic developments, especially in China, and the impact of weather conditions on oil demand.