Investing.com– Oil prices were flat in Asian trade on Friday, but were set for their first positive week in five as a mix of bargain buying, improving sentiment towards the U.S. economy and persistent geopolitical tensions boosted prices.
Mildly better-than-expected Chinese inflation data helped oil pare initial losses, given that it highlighted some improvements in the world’s biggest oil importer.
Oil prices rebounded from over seven-month lows this week, after concerns over a U.S. recession and a slew of weak Chinese readings battered crude prices over the past four weeks.
Traders were also seen attaching a greater risk premium to oil prices, after Ukraine mounted one of its biggest attacks on Russia since the war began in early-2022. Sustained tensions in the Middle East, amid fears of retaliation by Iran and Hamas against Israel, also kept some risk elements in oil.
fell 0.1% to $79.11 a barrel, while fell 0.1% to $74.99 a barrel by 21:35 ET (01:35 GMT).
Chinese inflation improves mildly
Chinese inflation grew more than expected in July, government data showed on Friday, while a decline in inflation was slightly less than expected.
The data highlighted some improving trends in the world’s biggest oil importer, especially after Beijing enacted a slew of interest rate cuts through July.
But inflation still remained largely languid, with a sustained decline in factory prices suggesting that a deflationary trend was still in play.
China’s oil imports also shrank in July, data showed earlier this week. Fears of slowing demand in the country have been a major pain point for oil markets.
Oil heads for first positive week in five
and WTI futures were trading up 1.8% and 3.2%, respectively, for the week.
Initial gains in crude were fueled largely by bargain buying, after a rout on Monday put prices at seven-month lows.
But signs of sustained draws in U.S. inventories spurred hopes that demand in the country remained underpinned by the travel-heavy summer season, even as the pace of draws appeared to be slowing.
Better-than-expected data, released on Thursday, also spurred hopes that a labor market decline was not as dire as initially feared.