Oil prices gain due to strong economic recoveries

Gulf Today Report 

Oil prices climbed on Friday on course for a 7% weekly gain due to data indicating improved oil demand outlook and strong economic recoveries in China and United States.

Brent crude futures rose 30 cents, or 0.5%, to $67.24 a barrel at 05:51 GMT while US West Texas Intermediate (WTI) crude futures were 28 cents.

According to China National Petroleum Company, China's 2021 net crude oil imports are likely to grow by 3.4% this year versus 2020 to about 11.2 million barrels per day.

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Higher prices by US oil producers, an indication of strong economic recoveries globally and supply curbs by OPEC+ are supporting the market, said Westpac senior economist Justin Smirk.

He said the longer prices stay elevated, the more supply is likely to return to the market, and the risks of COVID-19 cases spiking in places like India and Europe could eventually drive prices down.

Taking into account worsening coronavirus developments in some countries, "crude overshot to the upside this week and a pullback is now due," said Vandana Hari, energy analyst at Vanda Insights.

Hari added that "India and major economies in Europe need to be reckoned with to complete the oil demand picture."