Oil set to snap two-week losing streak on China demand optimism

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Oil prices were set to snap a two-week losing streak on Friday amid optimism about higher energy demand from top crude importer China and a weaker dollar.

A weaker dollar makes oil cheaper for holders of other currencies, which could boost demand.

Analysts also expect voluntary crude output cuts implemented in May by the Organization of the Petroleum Exporting Countries and its allies, and by Saudi Arabia in July, to support prices. Still, a weak economic outlook looms over market sentiment, as China's industrial output and retail sales growth in May"Crude prices are trying to find support as the global growth outlook remains vulnerable to further shocks from aggressive rate hiking campaigns," Edward Moya, an analyst at OANDA said in a note.to a 22-year high as expected on Thursday. The U.S. Federal Reserve this week signalled at least a half of a percentage point increase by year end.

Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand.Our Standards:Sudarshan currently reports on the evolving energy landscape in Asia, as the region tries to strike a balance between ensuring reliable electricity supply and fighting climate change.

 

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Oil prices dip, pausing after previous session's surgeOil prices edged lower in early trade on Friday, taking a pause from the previous session when futures gained steeply on optimism around higher energy demand from top crude importer China.
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