WTI crude oil prices rose above $81 per barrel on Friday and were set to gain for the second straight week, underpinned by an improving demand outlook in China and supply worries stemming from tightening sanctions on Russian flows.
The International Energy Agency said that global consumption will likely reach a record daily average this year as top crude importer China lifted strict Covid curbs, while price cap sanctions on Russia could dent supply.
Multinational bank Goldman Sachs argued that solid demand growth could send oil prices above $100 in 2023, while JPMorgan Chase issued a more cautious outlook due to economic fears in the West.
Meanwhile, disappointing economic data in the US and central bank commitment to tighter policy stoked recession fears, prompting investors to avoid risky assets.
Also keeping a lid on prices were EIA data showing an unexpected increase in US crude inventories last week.