Crude oil prices rose above $78 per barrel as improving in demand

brent oil prices

WTI Crude oil rose above $78 per barrel on Friday and were set to gain for the second straight week, as signs of tightening US crude supplies and an improving demand outlook in top crude importer China supported oil prices during the period.

Uncertainties around Russian crude flows also added to the bullish case, with Russia’s Baltic oil exports predicted to decline by 20% month-on-month in December after the European Union and G7 nations imposed sanctions and a price cap on Russian crude, according to Reuters calculations.

Meanwhile, the US oil benchmark dropped 1% on Thursday after better-than-expected third quarter US GDP numbers reinforced the Federal Reserve’s case to raise interest rates further and keep them higher for longer.

Investors also worried about surging Covid cases in China that could disrupt economic activities, as well as the prospect of a global economic slowdown next year.