Oil up but posts weekly loss on stock build, trade tensions

For the week, Brent fell 0.9 percent, while US crude lost 3.1 percent.

the equicom

Oil prices rose on Friday on signs of surging demand in China, the world’s No. 2 oil consumer, although prices were headed for a second weekly decline on swelling US inventories and concern that trade wars were curbing economic activity.

Brent crude futures rose 49 cents to settle at $79.78 a barrel. West Texas Intermediate (WTI) crude futures rose 47 cents to settle at $69.12 a barrel.

For the week, Brent fell 0.9 percent, while US crude lost 3.1 percent. Both contracts have fallen around $7 a barrel below four-year highs reached in early October.

WTI’s discount to Brent widened to its most since June 8, hitting $11.00 a barrel.

Refinery throughput in China, the world’s largest oil importer, rose in September to a record 12.49 million barrels per day (bpd), government data showed.

The data fed hopes about oil demand in China, even though economic growth slowed in the third quarter to its weakest since the global financial crisis.

An OPEC and non-OPEC monitoring committee found that oil producers’ compliance with a supply-reduction agreement fell to 111 percent in September from 129 percent in August, three sources familiar with the matter said. The Organization of the Petroleum Exporting Countries has led cuts from major oil producers since 2017 to shore up prices.

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