Oil prices rise, record second-straight weekly gains

Oil drilling rigs

Oil prices rose, on Jan. 20, recording second-straight weekly gains on optimism about demand in China.

Optimism about ending the zero-Covid policy outweighed concerns about global economic recession this year, as monetary policy continues to tighten.

The market is anticipating European sanctions on Russia's oil products that will come into effect on Feb. 5.

The US drilling rig count declined 10 units to 613 in the week ended Jan. 20, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report on Friday.

Brent crude for March delivery traded 1.7%, or $1.47, higher at $87.63 a barrel, recording weekly gains of 2.7%.

Meanwhile, West Texas Intermediate for February delivery rose 1.2%, or $0.98, to $81.31 a barrel, with weekly gains of nearly 1.8%.

US crude for March delivery moved up by 1.3%, or $1.03, to $81.64 a barrel.