Oil prices rose on Friday, continuing their upward momentum and heading for notable weekly gains. Brent crude climbed $0.69 (+0.9%) to $76.62 per barrel by mid-day trading, while U.S. West Texas Intermediate (WTI) increased $1.11 (+1.5%) to $74.24. For the week, Brent was set to gain 3.3%, with WTI poised for a 5% increase.
Prices were supported by colder weather across Europe and the U.S., which boosted demand for heating oil, and by optimism surrounding China’s economic measures. China announced wage increases for government workers and additional funding through ultra-long treasury bonds to stimulate business investment and consumer spending, strengthening demand expectations in the world’s largest oil importer.
U.S. crude stockpiles fell by 1.2 million barrels last week, while gasoline and distillate inventories increased due to higher refinery output, though fuel demand hit a two-year low. Meanwhile, the dollar’s strength, driven by expectations of sustained U.S. economic outperformance and higher interest rates, limited further price increases by raising borrowing costs and reducing oil demand.