Following a sluggish start to the year, oil is poised to post a weekly gain because of increasing demand expectations in China and a slowdown in US inflation.
China increased its crude imports this week after Beijing announced new import quotas, and the country’s withdrawal from Covid Zero is expected to cause consumption to reach a record high this year.
The first monthly drop in US consumer prices since 2020 was recorded in December, stoking hopes that the Federal Reserve may lower the rate at which it raises interest rates and boosting the positive mood on financial markets.
Source: Bloomberg
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