FX.co ★ Oil Prices Extend Gains On China Stimulus Hopes

Oil prices rose on Friday to extend gains from the previous session, as data showing a fall in U.S. crude stocks outweighed demand worries. Lackluster data on China's factory activity also spurred hopes of more policy stimulus.

Benchmark Brent crude futures rose half a percent to $74.93 a barrel, while WTI crude futures were up half a percent at $70.21.

Oil prices remain on course for a fourth straight quarterly decline on concerns over a global economic downturn and fuel demand.

While the U.S. economy continues to show surprising resilience in the face of higher interest rates, concerns persist over China's faltering post-COVID recovery.

Official data showed earlier today that manufacturing activity in China shrank for a third straight month in June, albeit at a slower pace.

The manufacturing PMI rose to 49.0 in June from 48.8 a month ago -matching expectations. The non-manufacturing sector continued to expand in June, with the corresponding index falling to 53.2 from 54.5 in the previous month.

A private survey released alongside showed that China's stimulus measures unveiled last year did little to boot loan demand in the second quarter.

On the positive side, the EIA energy report released earlier this week showed a 9.6M bpd draw and robust demand signs everywhere.