The price of crude oil has moved back above $80 U.S. a barrel and is headed for a second weekly gain as the demand outlook in China improves.
West Texas Intermediate crude oil, the U.S. standard, rose to $81 U.S. a barrel for a weekly gain of 1%. Chinese consumption has been gathering steam after the country’s top crude importer abandoned its COVID-19 restrictions.
Crude oil prices have been up-and-down in the last few weeks as traders and investors try to make sense of the demand outlook and the global market.
Currently there are differing outlooks from banks on where crude oil prices are headed, with Goldman Sachs (GS) forecasting $100 U.S. a barrel, and other banks calling for prices to fall as low as $75 U.S. per barrel.
The price of Brent crude oil, the international benchmark, rose 0.6% to $86.63 U.S. a barrel. Holdings of Brent crude oil have risen to their highest level since March 2022 as futures trading volumes increase.
In coming weeks, commodity traders will be looking for any impacts caused by a European Union ban on Russian energy imports that is scheduled to begin on February 5.
