Oil heads for solid weekly gain on China demand hopes

Oil prices slipped in early trade on Friday but were on track for gains of more than six per cent for the week on solid signs of demand growth in top crude-oil importer China and expectations of less aggressive interest rate rises in the United States. Brent crude futures had fallen 33 cents, or 0.4pc, to $83.70 a barrel by 0322 GMT, while US West Texas Intermediate (WTI) crude futures slipped 20 cents, or 0.3pc, to $78.19. Brent has jumped 6.7pc so far this week and WTI is up 6.2pc, recouping most of last week’s losses. Analysts said recent Chinese crude purchases and a pick-up in road traffic fuelled confidence in a demand recovery in the world’s second-largest economy following the reopening of its borders and easing of Covid-19 curbs after protests last year. “Given the focus on energy security, we anticipate that Chinese imports will continue to pick up, particularly as refinery runs ramp and stockpiling crude remains a strategic priority,” RBC commodity strategist Michael Tran said in a client note.