Oil prices edged up on Friday, closing at their highest in two months, as investors looked to governments around the world increasing policy support to boost economic growth and lift fuel demand. Brent crude futures rose 1 cent to $75.94 a barrel, while US West Texas Intermediate crude increased by the same amount to $73.14 a barrel.
The increase was largely driven by hopes that central banks in Asia would loosen monetary policy to stimulate economic growth. With growth expected to remain subdued and inflation below target, analysts believe that lower interest rates will spur more economic activity and lead to higher fuel consumption.
Investors are also watching for upcoming crude prices from top oil exporter Saudi Arabia, which may raise prices for Asian buyers in February for the first time in three months. In the US, gasoline and distillate inventories jumped last week as refineries ramped up output, but fuel demand hit a two-year low.
Traders are keeping an eye on recent weather forecasts, particularly for a cold snap in the US and Europe, which could boost demand for diesel as a substitute for natural gas for heating.
Source: https://finance.yahoo.com/news/oil-rises-two-month-highs-015619447.html