Oil extends gains on optimism over policy support for growth
Oil prices extended their gains on Friday after closing at their highest in more than two months in the previous session on hopes governments across the world may increase policy support to revive economic growth that would lift fuel demand.
Brent crude futures rose 16 cents, or 0.2%, to $76.09 a barrel by 0132 GMT after settling at its highest since Oct. 25 on Thursday. U.S. West Texas Intermediate crude was at $73.32 a barrel, up 19 cents, or 0.3%, with Thursday's close its highest since Oct. 14.
Both contracts are on track for their second weekly increase with investors back from holidays, improving trade liquidity.
Factory activity in Asia, Europe and the U.S. ended 2024 on a soft note as expectations for the new year soured amid growing trade risks from a second Donald Trump presidency and China's fragile economic recovery.
"The December PMIs for Asia were a mixed bag, but we continue to expect manufacturing activity and GDP growth in the region to remain subdued in the near term," Capital Economics analysts said in a note, referring to purchasing managers' indexes data published on Thursday.
Investors are eyeing further interest rate cuts by the U.S. Federal Reserve this year to support its economy, while China President Xi Jinping has pledged more proactive policies to promote growth.
Source: Reuters
