Brent nears $84/bbl as oil prices rise on upbeat US and Chinese data!”

Oil prices rose nearly 1 percent in the latest session, with Brent crude, the global benchmark, posting its first weekly gain in three weeks. The rise came after strong economic data from China and the US, the world’s two biggest oil consumers, boosted hopes of rising demand.

Brent crude was up 71 cents, or 0.9%, at $83.98 a barrel. Meanwhile, U.S. West Texas Intermediate (WTI) crude rose 83 cents, or 1.1 percent, to $80.06 a barrel. For the week, Brent rose about 1% and WTI rose 2%.

The impact of Chinese industrial growth and US economic indicators

In April, China’s industrial output rose 6.7 percent from a year earlier, indicating a rebound in its manufacturing sector. This suggests a possible increase in future oil demand. In addition, China has taken significant steps to stabilize its troubled real estate sector.

Bob Yawger, director of energy futures at Mizuho, ​​noted that positive data from China supported oil prices. However, a decline in China’s annual refined output could have dampened that support.

Global trading centers saw declines in oil and refined product inventories, reversing the earlier trend of rising inventories that had negatively impacted oil prices. This created optimism about future demand.

In the US, the oil rig count rose by one to 497 this week, marking the first increase in four weeks, according to energy services firm Baker Hughes.

Recent US economic data also contributed to the positive outlook for global oil demand. US consumer prices rose less than expected in April, raising hopes for a lower interest rate. Tim Snyder, economist at Matador Economics, noted that consumer price data was better than expected, giving the US economy a slight boost.

Upcoming OPEC meeting and supply concerns

Lower US interest rates could weaken the dollar, making oil, which is priced in dollars, cheaper for buyers using other currencies.

Meanwhile, a fire broke out at Russia’s Tuapse oil refinery following a series of Ukrainian drone strikes, although the extent of the damage is still unclear.

Looking ahead, investors are looking to the upcoming OPEC meeting on June 1 for further direction. With Brent crude prices below $90, analysts such as Saxo Bank’s Ole Hansen expect OPEC to maintain current production cuts.

In addition, money managers increased their net long positions in U.S. crude oil futures and options in the week leading up to May 14, according to the U.S. Commodity Futures Trading Commission (CFTC).