Oil prices surge amid optimism over US, China economic growth
(MENAFN) Oil prices continued their upward trajectory on Friday, fueled by positive sentiment regarding economic prospects in the United States and China.
The global benchmark brent crude inched up by 0.06 percent, trading at USD75.82 per barrel as of 11:12 AM local time (0812 GMT), compared to its previous session close of USD75.77. Meanwhile, the US benchmark West Texas Intermediate (WTI) rose by 0.04 percent, reaching USD72.78 per barrel, up from USD72.75 in the prior session.
Market optimism stems partly from expectations of increased US economic activity following the January 20 inauguration of President-elect Donald Trump. Analysts predict that Trump’s policies will likely boost domestic oil and natural gas consumption, alleviating concerns over demand in the world’s largest crude oil consumer and driving prices upward.
Additionally, the Federal Reserve is anticipated to cut interest rates twice during the year, with the first reduction expected in the latter half of the year’s first half. These rate cuts are seen as likely to stimulate economic growth, further elevating oil demand.
Adding to the bullish sentiment, recent data showing a larger-than-expected decline in US crude oil inventories has strengthened the perception of rising demand, further supporting the increase in oil prices.
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