Economic Optimism Puts Oil Prices on Course for a Big Weekly Gain

Related stories

Drama as 16, 17-year-olds Now Allowed to Vote In UK Elections

By Abiola Olawale  The government of the United Kingdom announced...

Brazil’s Petrobras Weighs Return to Retail Fuel Market to Reduce Prices

Brazil’s Petrobras will discuss this week tweaking its mid-to-long-term...

Base Handover: France Ends Decades-Long Military Presence in Senegal

By Abiola Olawale France on Thursday officially ended its 65-year...

By Irina Slav

Solid economic growth figures from the U.S. and news about China’s economic stimulus combined this week to push oil prices higher.

Benchmarks could post their biggest weekly rise since October this week, Reuters said, with supply uncertainty in the Middle East contributing to the bullish sentiment.
U.S. GDP in the fourth quarter of last year expanded by 3.3%, which was substantially higher than what analysts had expected, which was 2% growth.

Meanwhile, in China, the central bank said it would inject the equivalent of $140 billion into the economy to stimulate faster growth by cutting the amount of reserves local banks need to hold.

In the Middle East tensions continue running high, with the Yemeni Houthis striking a U.S.-owned cargo vessel this week following the second round of attacks on targets in Yemen by U.S. and UK forces.

Earlier this week reports emerged that Washington had asked Beijing to talk to Tehran and get the Iranians to convince the Houthis to stop attacking ships in the Red Sea. These reports were followed by news, based on unnamed sources, that Chinese officials had approached Iran’s leadership with a request to tell the Houthis to dial down the anti-ship violence.

“Basically, China says: ‘If our interests are harmed in any way, it will impact our business with Tehran. So tell the Houthis to show restraint'” one source from the Iranian government told Reuters.
Chinese vessels are not targets for the Houthis but the disruption of traffic in the Red Sea has hurt Chinese exporters by significantly lengthening the time needed for their goods to reach their end destination in Europe, adding to costs.

Oil traders appear to have finally started noticing these developments and have factored the disruption into their trading decisions.

On Thursday, Brent crude topped $80, jumping above $82 before retreating somewhat, and West Texas Intermediate reached a two-month high of some $77 per barrel on Thursday. Prices fell back slightly on Friday morning but remained elevated for the week.

NB: Irina Slav wrote this article for Oilprice.com

The New Diplomat
The New Diplomathttps://newdiplomatng.com/
At The New Diplomat, we stand for ethical journalism, press freedom, accountable Republic, and gender equity. That is why at The New Diplomat, we are committed to speaking truth to power, fostering a robust community of responsible journalism, and using high-quality polls, data, and surveys to engage the public with compelling narratives about political, business, socio-economic, environmental, and situational dynamics in Nigeria, Africa, and globally.

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

NDN
Latest News
2027: Buhari’s exit Cripples APC in entire North as CPC Loyalists Defect in Large NumbersDrama as 16, 17-year-olds Now Allowed to Vote In UK ElectionsSenate passes $9 billion in spending cuts to public broadcasting, foreign aid requested by TrumpBrazil’s Petrobras Weighs Return to Retail Fuel Market to Reduce PricesBase Handover: France Ends Decades-Long Military Presence in Senegal5 Oil Titans Who Revolutionized the Energy Sector2027: Dele Momodu dumps PDP for Coalition party, ADCBuhari's Honour: Tinubu holds special FEC session as Nigerians Mourn late Hero, Statesman. First Bank Crisis: In High-Stake Intrigues, Otedola Seizes Control with 40% Stake as Oba Otudeko Exits in N324.47bn DealElderstatesman, Emeka Anyaoku, Speaks Again , Urges Nigeria to Adopt a "People’s Democratic Constitution""Nigeria's challenges not about the constitution, but its operators", says ObasanjoNigeria Surpasses OPEC’s 1.5 Million Barrel Oil Quota in June 2025Natasha vs Akpabio: Senate President Heads to Court, Challenges Court Order to Reinstate SenatorOluwo Commends Awujale's Burial, Says Late Monarchs Shouldn't Be "Butchered Like Animals"Alleged N6.9Billion Fraud: Drama as Ex-Governor Fayose Wins in Court
X whatsapp