WTI crude futures rose to $78 per barrel on Friday, marking a second consecutive week of gains and reaching the highest point in almost two months. This upswing was attributed to positive U.S. economic growth, indications of Chinese stimulus boosting demand expectations, and support from Middle East supply concerns. Official data showed that US crude inventories plunged by 9.2 million barrels last week, surpassing market expectations and marking the most significant drop since August. Data also showed that the US economy grew faster than expected in the fourth quarter, while China announced that it will cut banks’ reserve ratio next month and pledged to stabilize its capital markets. On the supply side, geopolitical tensions flared in the Middle East this week after US and UK forces carried out more strikes against Houthi targets in Yemen, raising supply risks in the oil-producing region.
