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Oil prices climb for second straight day
Oil prices rose in European trade on Friday for the second session on track for ten-month highs scaled earlier this week.
The gains come amid hopes for the rebound of the global economy as global central banks pause their aggressive policy tightening.
Prices are also boosted by a steep drop in US crude stocks according to official EIA data in a positive sign for demand.
Global Oil Prices
US crude rose 1.3% to $90.76 a barrel, while Brent added 0.7% to $93.92 a barrel, with a session-low at $92.29.
US crude rose 0.4% on Thursday, while Brent added 0.2%, the first profit in three days following two days of correctional losses.
Global oil prices rose 6% on average since September 5 after both Russia and Saudi Arabia extended their voluntary production cuts for three more months.
Global Economy
Global central banks including banks in Switzerland, Britain, the US, have all decided to pause interest rate hikes to gauge economic response.
Such a step will likely be followed by steps to support the economy early in 2024, which could include interest rate cuts.
A rebound in global economic conditions will obviously boost fuel demand.
US Stocks
The Energy Information Administration reported a drop of 2.1 million barrels in US crude stocks last week, while analysts expected a drop of 1.3 million barrels.
Gasoline stocks fell 800 thousand barrels to 219.5 million barrels, as distillate stocks fell 2.9 million barrels to 119.7 million barrels.
US Production
The EIA reported no change in US production at 12.9 million barrels, the highest since March 2020.
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