Oil Prices Set for Weekly Gains Amid Positive Economic Data and Geopolitical Tensions

Significant drop in US crude stockpiles and China's stimulus measures boost oil prices, while recovery in supply limits rise.

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.