Oil prices up on positive Chinese demand outlook

By Zeynep Beyza Kilic

Oil prices increased on Friday with a positive outlook for oil demand in China, the world's second-biggest oil consumer.

International benchmark crude Brent traded at $94.22 per barrel at 10.36 a.m. local time (0736 GMT), a 0.55% gain from the closing price of $93.70 a barrel in the previous trading session on Thursday.

The American benchmark West Texas Intermediate (WTI) traded at the same time at $90.70 per barrel, up 0.60% from the previous session's close of $90.16 per barrel.

Both benchmarks continue to coast at their highest level since November 2022. Data indicating an increase in oil demand and consumption in China supported by the economic recovery pushed prices higher on Friday.

Better-than-expected economic data in China and reports of record oil consumption supported the view that demand will continue to increase in the world's biggest crude importer.

Oil refinery operations in the country reached a record level in August at 64.69 million tons, up 19.6% from a year earlier, according to data published by the National Bureau earlier on Friday.

The market expects a draw in global supply for the remainder of the year, aided by output reductions from Saudi Arabia and Russia, two of the world's largest oil producers.

The deficit in the global demand and supply balance will widen and prices will rise further in the last quarter of the year as Saudi Arabia and Russia continue to reduce their production, the International Energy Agency said in its monthly report published earlier in the week.