Crude Oil futures were seen in green on Friday, moving higher from the previous session’s losses, assisted by the positive news that China’s economy grew at a faster pace this year in the third quarter.
The West Texas Intermediate (WTI) advanced 0.20% higher to $100.88 a barrel, while the European benchmark crude Brent gained 0.12% to $109.25 a barrel, at the time of writing.
The world second largest oil consumer, advanced an annualized 7.8% in the three months from July to September, a report from the National Bureau of Statistics (NBS) confirmed. Growing from the previous reading of 7.5% in the second quarter and 7.7% in the first quarter.
The climb in the national-railway investment and tax breaks for small companies provided the boost for the economy in the third quarter.
The Chinese government’s growth target is expected to rise to 7.5% this year. China accounts for approximately 11% of the global oil demand last year, while US accounts for 21%, reports from BP’s Statistical Review of World Energy confirmed.
“We preview our expectations for 3Q13 results for the North American integrated oils and major producers, with reporting scheduled to begin on October 24. Sequentially, we forecast an 8% increase in earnings for the integrated oils and major producers, relative to 2Q13 results, and a 9% increase relative to year-ago levels,” analysts from JPMorgan wrote in a note.
Analysts also said that the positive crude prices are likely to boost earnings, compensating the weak refining margins.
Libya’s oil production increased from 100,000 barrels per day to 263,000 barrels per day after the country reopened its pipeline on Thursday.
The US crude stocks increased by 5.9 million barrels in the week ending October 11, reports from the American Petroleum Institute confirmed. Gasoline stockpiles dropped 2.2 million barrels, while distillate supplies declined 1.3 million barrels.
The supply data from the Energy Information Administration was not released due to the partial government shutdown.
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