Chinese optimism on oil

Oil will close the week with little change as economic slowdown concerns ease optimism about China’s demand.

U.S. crude traded around $81 a barrel after closing 1.1 percent on Thursday.

US economic growth exceeded expectations in the last quarter of 2022, but there is still a significant risk of calm this year. The Fed is expected to raise interest rates further next week.

Oil has rebounded from its steep decline at the start of the year, largely on hopes that the country’s consumption will recover quickly after the removal of China’s Covid policy. Trafigura Group sees “too much positive” as pent-up demand remains free and liquidity returns to the futures market.

Investors are weighing the potential impact of European Union sanctions on Russia’s sea shipments of petroleum products early next month. The EU plans to end the price of exports of premium refined fuels, such as diesel, at $100 per barrel, with a lower cap of $45 for discounted products.