Oil prices traded higher on Friday, poised for a weekly gain. Data from both the US and China, the world’s largest crude consumers, indicated higher demand.
A weekly decline in US crude inventories and China’s increased crude imports in April have bolstered oil markets last week as they signaled a recovery in demand.
Chinese exports have also improved, indicating a potentially stronger economic activity in the country. At the same time, US jobs data supported expectations for interest-rate cuts this year.
The latter could help fuel demand for oil over the longer term as the economy comes under less financing strain. On the supply side, OPEC+ could maintain its supply cuts in June, effectively supporting a rebound. However, geopolitical conditions in the Middle East could remain a source of concern as risks of a flare-up in tensions remained ever-present.
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