Oil steady amid China demand optimism, strong US dollar

ISTANBUL

Oil prices slightly increased on Friday amid demand optimism in China, the world's largest crude oil importer, while the strong US dollar capped gains.

The international benchmark Brent crude rose by 0.36% to $72.98 per barrel at 10.42 a.m. local time (0742 GMT), up from $72.72 at the close of the previous session.

The US benchmark West Texas Intermediate (WTI) also increased by 0.39% to $69.67 per barrel, compared to its prior session close of $69.39.

A holiday-shortened week led to thin volumes in the oil markets.

Prices were supported by demand optimism in China, the world's largest crude oil importer. The World Bank on Thursday raised its forecast for China's economic growth in 2024 and 2025.

On Thursday the country also revised upwards the size of its economy by 2.7% to 129.4 trillion yuan.

However, a strengthening US dollar weighed on oil prices and capped gains. A stronger dollar makes oil more expensive for holders of other currencies.