Oil prices set for second week of gains on brighter China outlook

Shafaq News / Oil prices were set to post a second straight week of gains on Friday, spurred largely by brightening economic prospects for China which should boost its fuel demand.

Brent futures for March delivery gained 30 cents, or 0.35%, to $86.46 a barrel by 0317 GMT, while U.S. crude advanced 49 cents to $80.82 per barrel, a 0.6% gain.

Both closed 1% higher on Thursday, near their highest closing levels since Dec. 1.

Chinese November oil demand climbed to the highest level since February, data from the Joint Organisations Data Initiative showed on Thursday. OPEC said on Tuesday that Chinese oil demand would rebound this year due to relaxation of the country's COVID-19 curbs and drive global growth.

Oil prices were also supported by hopes that the U.S. central bank will soon end its tightening cycle.

Federal Reserve Bank of New York President John Williams said on Thursday the U.S. central bank is seeing signs of inflationary pressures cooling off from torrid levels.

(Reuters)