Oil prices rise on China, Greece

Front-month USA crude futures were trading at $53.26 per barrel at 0303 GMT, up 48 cents from their last settlement, although prices remain over 6 per cent below last Friday.

Kloza thinks what’s happening to prices now – wild swings in crude prices that are a major factor in the price at the pumps and daily changes at the pumps – are a “dress rehearsal” for the fall when consumer demand drops markedly.

■ The Greek financial crisis could slow economic activity in Europe, which would reduce demand for gasoline and diesel.

China’s economy significantly influences the price of everything from soybeans and metals to crude oil.

Crude oil futures traded largely steady on Friday after data showed the US oil rig count barely rose this week, allaying fears of an acceleration in drilling that could bring on a surfeit of new supply to the market.

Traders were also awaiting the release later Wednesday of the weekly United States crude inventory report, a closely watched barometer of demand in the world’s top oil consuming nation, analysts said.

Expectations that western powers will strike a nuclear deal with Iran in the coming days has refocused the market on the return of additional exports of Iranian barrels, which have been sharply curbed by sanctions in recent years.

China’s benchmark Shanghai stock index surged Thursday after the government issued more policies to halt a market slide, but analysts said it was unclear whether the rally would be sustained.

Oil prices are also supported by some optimism that a deal between Greece and its eurozone creditors might be possible over the weekend.

The USA dollar and oil prices tend to move in opposite directions.

He has said Iran can restore its production of one million barrels per day fairly quickly, which supply can hit the market in less than six months.

The question that faces oil trades today is Will or Won’t the West reach a nuclear deal with Iran.

“While USA crude-oil production is expected to decline over the months ahead, total output in 2015 is on track to be the highest in 45 years”, EIA Administrator Adam Sieminski said in an e-mailed statement. In respect to prices, the rising USA dollar causes oil prices to become more expensive for buyers with other currencies. “Funds are contributing to the sell-off, with (U.S.) speculators reducing net-long position in WTI oil by 8 percent in the latest week”, ANZ said.