On Friday, oil prices hit the highest level in one month on indications of emerging demand with China reporting increases in refinery run rates.
By 07.07 GMT, Brent crude oil futures jumped by 3.9% or USD1.21 cents to USD32.34/barrel after touching USD32.44, the highest since April 14. On Thursday, it climbed by 7% and now it is heading for a 3% weekly gain.
The US WTI crude climbed by 3.3% or 92 cents to USD28.48/barrel after hitting USD28.54, the highest since early April. In the previous session, WTI soared by 9% and now is also heading for the third weekly rise, up around 15%.
Demand-side started to show a glitter of hope as Friday’s data showed China’s daily crude oil use rate rebounded in April due to refineries speeding up operations.
Analyst Amarpreet Singh of Barclays commented, “Demand is increasingly showing signs of having troughed, but the sheer size and speed of the disruption and associated inventory overhang will take time to get fully absorbed.”
