Summary:
Asian oil prices surged Friday as global benchmark Brent eyed its first weekly gain in three weeks, driven by rising demand and a weaker US dollar.
Oil prices rose in Asian trading hours on Friday, with global benchmark Brent set for its first weekly increase in three weeks on signs of improving global demand and a weaker US dollar.
Recent declines in oil and refined products inventories at major global trading hubs have created optimism, reversing a trend of rising stockpiles that had weighed heavily on crude oil prices in prior weeks.
US crude oil, gasoline and distillate inventories fell last week as refining activity and fuel demand rose, the EIA said. Crude inventories dropped by 2.5 million barrels, compared with expectations for a loss of 543k barrels.
Elsewhere China’s economy likely continued to show signs of improvement in April, buoying the outlook for recovery as policymakers ramped up support. It imported more oil than expected last month.
Industrial production probably remained a key growth driver with robust exports and infrastructure investment driving demand. China plans to pump 1 trillion yuan into the economy through long-term bond sales.
Wildfires in Canada were moving closer to the country's major oil production hubs. Venezuela’s oil output has slightly receded for a second straight month following the return of US sanctions.
WTI Crude has been largely range-bound this week with the upside capped at 200 SMA. If the price increases above that level, a further rally beyond $82 is likely.
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