(MENAFN- Trend News Agency) Oil prices rebounded by about 1% on Friday after a meeting
between Saudi Arabia and Russia calmed markets amid strong China
demand expectations, after a banking crisis sparked a sell-off in
global financial and oil markets this week, trend reports with reference
to reuters .
Brent crude futures rose by 81 cents to $75.51 a barrel by 0400
GMT, having snapped three days of losses to settle 1.4% higher on
U.S. West Texas Intermediate crude climbed 78 cents to $69.13 a
barrel, after closing 1.1% higher in the previous session.
Both contracts hit their lowest in more than a year this week
and are set to post their biggest weekly falls since December at
about 10%. Oil and other global assets were undercut this week as
the collapse of Silicon Valley Bank (SVB) and Signature Bank sent
the U.S. and Swiss governments scrambling to shore up liquidity at
'Oil demand is being repriced, but we see little change in
fundamentals and are inclined to ride out financial sector
volatility, keeping our price forecasts unchanged for now as we
await updates on potential policy actions in the coming weeks,'
JPMorgan analysts said in a note, referring to an OPEC+ meeting and
Washington most likely moving to start refilling strategic
The advisory committee of the Organization of the Petroleum
Exporting Countries and their allies including Russia, a group
known as OPEC+, will meet on April 3.
Further decline in prices may prompt OPEC+ to reduce supplies to
prevent a forecast inventory build in the second quarter, analysts
at National Australia Bank said in a note.
WTI fell under $70 a barrel for the first time since December
2021, possibly making prices attractive enough for the U.S.
government to start refilling its Strategic Petroleum Reserve,
which is sitting at record low levels, stimulating demand.
Analysts' expectations on China's demand recovery supported the
end-week price rebound, with U.S. crude exports to China in March
headed for their highest in nearly two and a half years.
China's demand rebound will be positive for oil prices if
upcoming data shows a good recovery of the country's economy, said
analyst Tina Teng of CMC Markets.
'Road traffic and air travel in China are growing strongly while
signs of improvement have emerged in developed economies,' ANZ
analysts said in a client note.
However, contagion risks among banks are still keeping investors
on edge, curbing their appetite for assets such as commodities, as
they fear a further rout could trigger a global recession and cut
'The recent banking turmoil may continue to weigh on the demand
outlook. These issues regarding inflation, the central bank's rate
hikes, and confidence in financial systems, cannot be settled
quickly,' Teng said.