WTI Crude Oil : steadied near $76 per barrel on Friday and were on track to end the week more than 7% higher, as a bullish outlook for oil markets outweighed concerns about the prospect of a higher peak for interest rates and a possible global recession.
Earlier this week, the International Energy Agency said that oil prices could rally next year as China recovers from the Covid-induced demand downturn and as the latest Western sanctions squeeze Russian supply.
There have been indications that Russian oil flows to Asia are declining following G7 sanctions targeting Moscow’s petroleum revenues, as reported by Bloomberg. Optimism around China’s economic reopening as authorities rapidly dismantled strict Covid restrictions also lifted the demand outlook.
Meanwhile investors remain cautious about mounting risks of a global recession as major central banks appear set to keep raising interest rates in an effort to bring inflation down to sustainable levels.