Oil prices rise, record weekly gains on demand optimism

Oil prices rose on Oct. 21, amid cautious optimism about crude demand and valuation of risks associated with supply.

Crude prices fluctuated, but moved up amid speculations the Federal Reserve would slow down the pace of interest-rate hikes after November meeting, which may support the global economy and demand for crude.

Oil prices were also driven by a significant increase in stock markets, supported by improved investor sentiment, in addition to a decline in the US dollar against other major currencies.

The US drilling rig count rose two units to 612 in the week ended Oct. 21, General Electric Co.’s Baker Hughes energy services firm said in its closely followed report on Friday.

Brent crude futures for December delivery rose 1.2%, or $1.12, to $93.50 a barrel, recording weekly gains of nearly 2%. Meanwhile, US West Texas Intermediate (WTI) crude futures gained 0.6%, or $0.54, to $85.05, with weekly gains of 0.5%.