Oil prices steady, set for mild weekly gains on positive demand forecasts
Investing.com-- Oil prices moved little in Asian trade on Friday, but were set for some gains this week as optimistic demand forecasts and output disruptions in the U.S. helped offset fears of slowing economic growth and high interest rates.
Both the International Energy Agency and the Organization of Petroleum Exporting Countries forecast an improvement in demand over the next two years, citing an economic recovery in China and an eventual decrease in interest rates.
Prices were also supported by an unexpected drop in U.S. crude inventories, which also came as severe cold weather knocked off about 40% of oil output in North Dakota. But limited travel conditions spurred a sustained, outsized build in oil product inventories.
Concerns over disruptions in Middle East supplies remained in play, as U.S.-led forces continued to clash with the Iran-backed Houthi group in the Red Sea. Iran and Pakistan also appeared to have opened up a new conflict, pointing to further instability in the region.
The flurry of positive signals helped prices recover marginally from a rough start to the year. Prices were also nursing an over 10% slide through 2023.
Brent oil futures expiring in March were flat at $79.07 a barrel, while West Texas Intermediate crude futures steadied at $73.97 a barrel by 20:15 ET (01:15 GMT). Both contracts were up between 0.8% and 1.4% for the week.
But weekly gains in crude prices were held back by persistent concerns over slowing economic growth and high interest rates, at least in the near-term.
Top importer China clocked weaker-than-expected economic growth in the fourth quarter, while barely edging past a government growth target for the year. The data ramped up concerns over sluggish crude demand in the
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