Oil heads for weekly gains on colder weather, Chinese policy support

HOUSTON: Oil prices rose on Friday, closing the week higher on the back of cold weather in Europe and the US as well as additional economic stimulus flagged by China.

Brent crude futures settled 58 cents, or 0.8%, higher at $76.51 a barrel, the highest level since Oct 14. US West Texas Intermediate crude settled 83 cents, or 1.13%, to $73.96, the highest level since Oct 11.

Brent notched a 2.4% weekly gain, while WTI climbed nearly 5%. Signs of Chinese economic fragility heightened expectations of policy measures to boost growth in the world’s top oil importer. “China just is unceasing at this point in terms of their announcements about trying to stoke economic activity, and the market’s taking note of that,” said John Kilduff, partner at Again Capital in New York. Worries about Chinese demand were a factor in bearish demand assumptions last year, he added.