Oil prices rose on Friday due to cold weather in Europe and the US and additional economic stimulus from China. Brent crude futures settled 0.8% higher at $76.51 a barrel, the highest level since October 14. U.S. West Texas Intermediate crude settled 1.13% higher at $73.96, the highest level since October 11.
China’s economic fragility has raised expectations of policy measures to boost growth in the world’s top oil importer. Oil is likely to have gained price support from increased demand for heating oil after forecasts for colder weather in some regions.
U.S. oil rig count fell one to 482 this week, and U.S. crude stockpiles dropped by 1.2 million barrels to 415.6 million last week. U.S. gasoline and distillate inventories jumped as refineries ramped up output, though fuel demand hit a two-year low.
The dollar was on track for its best week in about two months, even as it dipped on Friday, on expectations that the U.S. economy will continue to outperform its peers globally this year and that U.S. interest rates will stay relatively higher.
