Global oil prices continue to rise

Houston. Oil prices continued to increase during the week ending Jan.18, with the price of West Texas Intermediate (WTI) for February delivery up by 4.3 per cent and Brent crude for March delivery up by 3.7 per cent.

In the previous week ending Jan. 11, oil prices continued to extend increases. WTI for February delivery was up by 7.6 per cent, and Brent crude for March delivery up by 6.0 per cent.

At the end of the week, WTI settled at $51.59 a barrel, while Brent crude closed at $60.48 a barrel.

On Monday, oil prices declined as investors renewed concerns for a global growth slowdown. Analysts said oil prices were weighted down by the expectations of weaker economic growth, which would lead to weaker crude oil demand.

On Tuesday, oil prices rose as market sentiment was lifted by news that China might roll out further fiscal stimulus measures.

On Wednesday, oil prices rose slightly as moderate US crude oil draw eased concerns over a global over-supply.

On Thursday, oil prices declined as investors continued to worry about a global glut, which is fuelled by rising US crude output while Friday, oil prices surged as falling US rig count eased some of the concerns over a global glut.

The US rig count was down 25 rigs in the week ending Jan. 18 from the previous week to 1,050 rigs, or 114 more than that this time last year, according to data released by oilfield services company Baker Hughes on Friday.

“The market doesn’t panic a lot about the decrease because a number of factors, such as the cold weather, the delay of drilling projects, could contribute to the fall,” an oil and gas market researcher from the University of Texas at Austin said.

“What matters is the trend that we have a larger amount of active drilling rigs than last year. This shows that the industry is optimistic about future,” he added.

Oil prices are up about 4 per cent this week, posting a third consecutive week of gains following a three-month collapse. (Xinhua)