Oil prices rise amid growing demand from India, China

Share
1 min read
Share
  1. Brent crude oil futures were up $1.43, 1.93%, at $75.55

  2. Prices had dropped early in the week by the collapse of output talks between the OPEC and allies including Russia, together known as OPEC+

Falling US inventories, and signs of strong Asian demand from both China and India pushed up oil prices for a second day on Friday.

Brent crude oil futures were up $1.43, 1.93%, at $75.55. U.S. West Texas Intermediate futures were up $1.62, or 2.2%, at $74.56, Reuters reported.

“The market is coming to grips with the historic drop in U.S. oil inventories, and dimmed prospects of Iranian oil returning to the market,” said Phil Flynn, senior analyst at Price Futures Group in Chicago, quoted by Reuters.

Prices had dropped early in the week by the collapse of output talks between the Organization of the Petroleum Exporting Countries (OPEC) and allies including Russia, together known as OPEC+.

In recent past, oil prices have been roiled by the discord between Saudi Arabia and the United Arab Emirates over the oil output cuts with the latter no longer willing to restrict its production.

“Price wars are almost always quite short-lived – no one wins in the long term,” consultancy Rystad Energy said in a note.

“It is in the interest of the (OPEC+) group to provide some leniency to the UAE and other supply hawks to produce a bit more within the framework of the deal.”

SPEEDREAD


MORE FROM THE POST