A truck driver stands on a truck near an oil refinery, operated by Bharat Petroleum Corp. Ltd., in Mumbai, India, on Saturday, Dec. 10, 2022. A senior official at India’s oil ministry told reporters this month India has been buying oil from about 30 countries, and will continue to buy from anywhere including Russia beyond January. Photographer: Dhiraj Singh/Bloomberg
Oil prices rose by more than $ 1 a barrel on Friday, recovering from an early slump after Reuters reported that the United Arab Emirates is not planning an exit from the Organization of Petroleum Exporting Countries (OPEC).
Brent crude futures were up $ 1.01, or 1.2%, to $ 85.76 a barrel by 1:52 p.m. EST (1852 GMT). U.S. West Texas Intermediate (WTI) crude futures gained $ 1.38, or 1.8%, to $ 79.54.
Prices dropped early in the session by more than $ 2 per barrel after a media report said the UAE had held internal debates on leaving OPEC and pumping more oil. Two sources with direct knowledge told Reuters the report was “far from the truth”.
Brent futures were on track for their second biggest weekly percentage gains this year, WTI for its third largest, after strong Chinese economic data fed hopes for oil demand growth.
In China, service sector activity expanded at the fastest pace in six months in February and manufacturing activity in China also grew. China’s seaborne imports of Russian oil are set to hit a record high this month.
The world’s top oil importer is becoming increasingly ambitious with its 2023 growth target, aiming as high as 6%, sources told Reuters.
The market broadly shrugged off a 10th consecutive week of crude stock builds in the United States, and record exports of U.S. crude lent more support to prices, UBS analyst Giovanni Staunovo said.
The dollar weakened, and analysts polled by Reuters expect the greenback to be under pressure over the next 12 months, which would make dollar-denominated oil cheaper for holders of other currencies.
The European Central Bank was still sending hawkish signals, with ECB Governing Council member Pierre Wunsch saying its key interest rate could climb as high as 4% if inflation remains high.
