Oil prices gain on strong US economic data

Oil prices rose today, Friday, extending their gains for the second session in a row, supported by strong US economic data and mounting hopes for a recovery in demand after the reopening of the Chinese economy.

By 0113 GMT, Brent crude futures rose 30 cents, or 0.3 percent, to $87.66 a barrel. West Texas Intermediate crude futures rose 21 cents, or 0.3 percent, to $81.22 a barrel.

According to “Reuters”, the two benchmarks rose by more than 1 percent on Thursday, and Brent is heading towards recording a second weekly increase if the gains continue.

The improvement in the GDP and inflation data in the United States gives a glimmer of hope that the Federal Reserve (the US central bank) may slow down the pace of raising interest rates, which reduces fear of contraction in economic activity and the consequent demand for oil.

Meanwhile, the Centers for Disease Control and Prevention said this week that the number of severe COVID-19 cases in China decreased 72 percent from a peak this month, while the number of hospitalized patients fell 79 percent. These figures indicate the return of the Chinese economy to normal, which reinforces expectations of a recovery in oil demand.