Oil set for weekly gain as China demand optimism trumps recession fears
Oil prices fell on Friday, but were poised for a weekly gain as renewed optimism on China’s demand recovery over-rode recession worries brought by growing crude inventories in the US and tightening monetary policy in Europe.
Brent crude futures fell 31 cents, or 0.4 per cent, to $84.44 a barrel at 0412 GMT. US West Texas Intermediate (WTI) crude futures were down 29 cents, also 0.4 per cent, at $77.87 a barrel.
The retreat in oil prices came as euro zone inflation fell less than expected last month, which boosted expectations of further interest rate increases by the European Central Bank (ECB).
