Oil buoyed for a third week on optimism over Chinese demand

Oil rose along with many other commodities as optimism over Chinese demand countered concerns over a global economic slowdown.

West Texas Intermediate increased as much as 1.5 per cent on Friday, and were heading for a third straight weekly gain. Spain's economy expanded more than expected last quarter, adding to bullish sentiments a day after similar data from the U.S. helped ease fears over a recession. Trafigura Group sees “a lot of upside” for oil markets as pent-up demand is unleashed, especially as Chinese consumption rebounds. 

Crude has recovered from a steep slump at the start of the year and liquidity is returning to the futures market. A lot of the optimism is because of China, which reported higher mobility with a 120 per cent jump in trips out of the country in the first six days of the Lunar New Year holiday this week compared with last year. It's bringing some confidence about a rebound in the world's biggest oil importer after it exited strict COVID restrictions.