Oil posted a weekly gain, rebounding after a weak start to the year on improved demand forecasts in China and slowing inflation in the US.
China ramped up purchases of crude this week after Beijing imposed a new import quota. Consumption is poised for record growth this year following the dismantling of Covid Zero in the country.
In December, consumer prices in the US fell for the first time since 2020, fuelling expectations that the Federal Reserve will slow the pace of rate hikes. This added some bullish sentiment to financial markets.
Oil edged higher after a bumpy start to the year. Analysts from Goldman Sachs Group Inc. to top hedge fund manager Pierre Andurand predict that prices will surge above $100 per barrel in 2023. In addition, there are signs that trading activity has picked up in the new year.
