Overview

• Oil prices are set to post weekly gains due to positive economic data from the US and China, a draw in US crude stocks, and geopolitical tensions.
• US crude oil stockpiles fell by 9.2 million barrels last week, more than quadruple the 2.2 million-barrel draw analysts forecast, due to winter weather impacting production and reducing road usage.
• China's central bank announced a deep cut to bank reserves, freeing up about $140 billion of cash into the banking system, signaling support for a fragile economy and plunging stock markets.
• Geopolitical tensions in the Middle East remain high, with the US and UK conducting strikes against Houthi rebels in Yemen to halt attacks on commercial shipping.
• Despite the geopolitical tensions, oil prices have been limited by a recovery in supply, with Libya restarting oil exports and US supply starting to recover from a recent cold snap.