Oil futures looked to extend a recent run-up on Friday, with commodity experts pointing to continued optimism surrounding the prospects of global crude demand following the China-U.S. trade deal on Wednesday, and the Senate approval of the U.S.-Mexico-Canada trade on Thursday.
“Oil prices are stabilizing on improved demand outlooks since the phase-one trade deal has the Chinese penciling in $52.4 billion in additional purchases over the next two years,” wrote Edward Moya, senior market analyst at brokerage Oanda, in a daily note.
West Texas Intermediate crude for February delivery CLG20, +0.29% rose 17 cents, or 0.3%, at $58.70 a barrel on the New York Mercantile Exchange, after rising 1.2% on Thursday.
March Brent BRNH20, +0.48%, the global benchmark, advanced 25 cents, or 0.4%, at $64.87 a barrel on ICE Futures Europe, following a 1% gain a day ago.
However, for the week both contracts were set for declines. Brent is on track for a weekly gain of 0.2%. while WTI is looking at a 0.6% weekly skid.
Data from the world’s second-largest economy, China, and the biggest importer of oil, may, however, cloud the prospects for crude uptake. Chinese officials said the country emerged from 2019 with an official economic growth of 6.1%, within the government’s target range of 6% to 6.5% but the lowest level in nearly three decades.
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