LONDON: Oil prices edged higher on Friday, buoyed by evidence of tightening supplies and economic stimulus in slow-recovering China.

Brent futures were up 71 cents at $80.35 a barrel by 1330 GMT, while US West Texas Intermediate (WTI) crude climbed 69 cents to $76.34 a barrel. Both contracts were up by more than $1 earlier in the session.

“The supply deficit that had been looming in the second half of the year is now backed up by hard figures,” Commerzbank analysts said, citing recent data indicating China and India’s imports of crude oil from Russia had hit an all-time high in June.

However, buying interest from India is likely to weaken, given narrowing discounts and payment problems.

“Demand from China and India could therefore shift more towards other suppliers, which would push up oil prices,” the analysts said.

Published in Dawn, July 22nd, 2023