Oil prices up due to Chinese economic incentives, demand increase in US
Chinese government announces plans to encourage growth in 10 sectors and boost support for private enterprises on Wednesday
By Zeynep Beyza Kilic
ANKARA (AA) - Oil prices climbed on Friday on expectations that China will enhance incentives to improve its economy and because of greater oil demand in the US.
International benchmark Brent crude traded at $80.39 per barrel at 09.58 a.m. local time (0658 GMT), a 0.94% gain from the closing price of $79.64 a barrel in the previous trading session on Thursday.
The American benchmark West Texas Intermediate (WTI) traded at the same time at $76.40 per barrel, up 0.99% from the previous session's close of $75.65 per barrel.
Data revealed earlier in the week that economic growth in China, the world's largest crude oil importer, was not at the expected level. To improve the economy, market players expect the government to roll out incentives.
On Wednesday, the Chinese government announced plans to encourage growth in 10 sectors and bolster support for private enterprises.
Oil demand improved in the US, the world's biggest oil consumer. The US Energy Information Administration announced that commercial crude oil stocks in the country decreased by about 700,000 barrels last week to 457.4 million barrels. The stock decline indicates a surge in oil demand, supporting upward price movements.
Furthermore, the US dollar's weakness against other currencies, which declined 0.11% to 100.483, aided further trading by making oil cheaper for traders who use foreign currencies.
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