# Oil prices stable, heading for weekly gain
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2023-03-03
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Oil Prices Hold Steady, Poised for Weekly Gain on China
Meta Description: Brent and WTI crude futures see weekly gains as positive data from China overshadows U.S. inventory concerns and European monetary policy.
URL: https://financedigest.com/oil-prices-stable-heading-for-weekly-gainhtml

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By Shadia Nasralla

LONDON (Reuters) -Oil prices held steady on Friday, poised to register a weekly gain as renewed optimism on China’s demand recovery overrode recession worries over growing U.S. crude inventories and tightening [monetary policy](https://www.financedigest.com/uks-ftse-100-dips-on-scope-of-tighter-monetary-policy-informa-jumps.html "UK’s FTSE 100 dips on scope of tighter monetary policy; Informa jumps") in Europe.

Brent crude futures edged up by 4 cents, or 0.05%, to $84.79 a barrel by 0936 GMT. U.S. West Texas Intermediate (WTI) crude futures were up 2 cents, or 0.03%, at $78.18.

Brent has risen by about 1.9% this week, while WTI is [heading for a gain](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February") of 2.4%.

Those betting on higher [oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") are basking in the afterglow of the positive macro data out of China,” said PVM analyst Stephen Brennock.

In China, activity in the services [sector expanded at the fastest pace in six months](https://www.financedigest.com/japans-factory-output-posts-biggest-fall-in-8-months-on-weak-autos-chips-sectors.html "Japan’s factory output posts biggest fall in 8 months on weak autos, chips sectors") in February as the removal of tough COVID-19 restrictions revived demand, a private sector survey showed on Friday.

[Manufacturing activity in China also grew last month](https://www.financedigest.com/spanish-manufacturing-output-down-for-6th-straight-month-in-dec-pmi.html "Spanish manufacturing output down for 6th straight month in Dec -PMI"), at the fastest pace in more than a decade, reinforcing expectations of a fuel demand recovery. China’s seaborne imports of Russian oil are [set to hit](https://www.financedigest.com/uk-economy-set-for-smaller-hit-in-2023-than-previously-feared-imf.html "UK economy set for smaller hit in 2023 than previously feared – IMF") a record high this month.

The [world’s top](https://www.financedigest.com/top-5-restaurants-in-the-world.html "Top 5 restaurants in the world") oil importer is becoming increasingly ambitious with its 2023 growth target, aiming as high as 6%, sources involved in policy discussions told Reuters this week.

The market broadly shrugged off a 10th consecutive week of [crude stock builds](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") in the United States, as record exports of U.S. crude kept the increase smaller than in recent weeks.

Russia’s plan to deepen oil export [cuts in March also helped to buoy prices](https://www.financedigest.com/tesla-expands-discounts-with-price-cuts-in-europe-singapore-israel.html "Tesla expands discounts with price cuts in Europe, Singapore, Israel").

Meanwhile, analysts polled by Reuters expect the [dollar to weaken in the next 12 months](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks"), which would make dollar-denominated oil cheaper for holders of other currencies.

(Reporting by Shadia NasrallaAdditional reporting by Sudarshan Varadhan and Muyu XuEditing by David Goodman)


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