reflected oil price track, Friday, following turning for gains to remain close to three-month highs.
At the beginning of trading, the markets were exposed to fears regarding the new closure measures to combat “Covid-19” in Shanghai, the impact of strong demand for fuel in the United States, the largest consumer in the world.
Brent crude futures rose 94 cents, or 0.76%, to $124 a barrel, following falling 0.4% the previous day.
US West Texas Intermediate crude rose 88 cents, or 0.72%, to $122.39 a barrel, following falling 0.5% on Thursday, according to “Archyde.com”.
Brent crude is heading to record gains for the fourth consecutive week, while US crude is heading towards recording the seventh consecutive weekly increase.
“New anti-epidemic restrictions in Shanghai have raised concerns regarding demand in China,” said Kazuhiko Saito, chief analyst at Fujitomi Securities.
He added, “But the losses were curbed by expectations that the global supply shortage will continue with strong US demand for fuel and a slow increase in crude production by OPEC +.”
Shanghai and Beijing returned to COVID-19 alert status on Thursday following parts of Shanghai, China’s largest economic hub, imposed new lockdown restrictions and the city announced a round of mass testing of millions of residents.
“We had just begun to be bullish on Chinese demand with restrictions lifted in Shanghai and Beijing, and the latest move to close certain areas in Shanghai for comprehensive checks is a reminder that China’s policy has not changed regarding the (Covid).
“If it continues to use restrictions to limit its spread, economic activity may be affected,” she added.
China’s crude oil imports rose regarding 12% in May, but refineries are still battling rising inventories amid shutdowns and a slowing economy that affected fuel demand last month.
Meanwhile, peak summer fuel demand in the US continues to support crude prices.
