Oil Set for Weekly Gain as US and China Spur Demand Optimism By Bloomberg – Investing.com

Oil Set for Weekly Gain as US and China Spur Demand Optimism By Bloomberg – Investing.com

(Bloomberg) -- Oil headed for a weekly gain -- after topping $65 a barrel on Thursday -- as signs of strengthening demand from the U.S. to China stoked optimism the demand recovery from the pandemic is accelerating.

Futures in New York edged lower Friday, but are up more than 4% this week. Major American cities are moving to fully reopen, travel across China over an extended holiday that starts Saturday is expected to reach a record, and sales of transport fuels in the U.K. are climbing. Big oil companies are also starting to reap the rewards of the recovery.

There's been a raft of bullish calls on the market this week, with the OPEC+ alliance raising its consumption estimates for this year and Goldman Sachs Group Inc (NYSE:). predicting oil demand will post a record jump as vaccination rates increase. The coronavirus is still looming over the market, however, with a resurgence in regions such as India clouding the near-term outlook.