Oil prices bounced back by around 1% on Friday, following a meeting between Saudi Arabia and Russia that eased market concerns. The rebound came after a recent banking crisis triggered a global sell-off in financial and oil markets earlier this week. The positive sentiment was further fueled by expectations of strong oil demand from China.
As per reports, Brent crude futures surged by 81 cents to reach $75.51 a barrel by 0400 GMT. This followed three days of losses, with a 1.4% increase in settlement on Thursday. This positive trend in oil prices is likely to continue over the weekend.
Saudi Arabia and Russia Meeting Calms Markets
A meeting between Saudi Arabia and Russia, two of the world’s largest oil producers, reportedly eased market concerns, leading to the rebound in oil prices. The meeting reportedly discussed the supply chain challenges faced by the oil industry in the current scenario.
China Demand and Positive Sentiments
China’s demand for oil has been growing steadily, further adding to the positive sentiments in the market. The recent rebound in oil prices also comes after reports suggested that China’s crude oil imports are expected to rise by over 10% in 2022.
Analysts believe that China’s efforts to improve air quality, as well as the country’s economic growth, are major contributors to the increasing demand for oil.
Banking Crisis and Impact on Oil Markets
The recent banking crisis, which triggered a sell-off in global financial markets, also had an impact on oil prices. The crisis led to a drop in demand for oil, resulting in a decline in prices. However, with the situation seemingly improving, oil prices have bounced back.
The future outlook for oil prices is expected to remain positive, with the meeting between Saudi Arabia and Russia being a major factor. The recent positive developments in China, along with an improvement in the banking crisis, are also likely to boost demand and lead to higher prices.
In conclusion, the recent rebound in oil prices is a result of a combination of factors, including positive sentiments, increasing demand from China, and the calming effect of the Saudi Arabia-Russia meeting. Despite the recent banking crisis, the future outlook for oil prices remains optimistic.