Oil prices jump over 3% heading for weekly gains

13 Oct 2023

Riyadh - Maaal

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Crude oil prices achieved a strong jump, exceeding 3%, on the sidelines of the last trading of the week. Today is Friday; Prices are also moving to achieve strong weekly gains

According to Reuters, economic data issued today in China – the second largest importer and supporter of crude oil in the world – contributed to improving market sentiment regarding the recovery of Chinese demand for oil in the future, which led to a strong rise in oil prices during trading.

During today’s crude oil trading; Spot contracts for Brent crude jumped by 3.47% and recorded about $89.19 per barrel, in addition to spot contracts for West Texas Intermediate crude rising by 3.17% to reach about $86.14 per barrel.

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Crude oil prices rose very strongly against the backdrop of Friday’s trading, amid prevailing concerns about expectations of a shortage of oil supply in the markets. Especially with the continuing tensions in the Middle East region

And also; Black crude prices jumped strongly during trading; Due to the prevailing state of optimism in the markets regarding the possibility of a recovery in Chinese demand for crude oil during the coming period; Especially after Chinese inflation slowed last September to the level of 0.0%, in addition to the increase in the level of new loans provided by Chinese banks during the same time period to about 2.310 trillion yuan, which suggests that China continues to achieve economic recovery, which means the possibility of an increase in Chinese demand on crude oil, which supports crude oil levels during trading

In addition; the positive expectations of the Organization of the Petroleum Exporting Countries (OPEC) regarding global growth contributed to oil prices continuing their upward momentum during trading. OPEC raised global GDP growth expectations to 2.8% for the year 2023, an increase of 0.1% from previous estimates which has increased speculation about the strength of global demand for crude oil in the future. This contributed to the jump in crude oil prices.