2023.03.3119:11:00UTC+00Oil Futures End Session On Firm Note, But Post Losses For Month, Quarter

Crude oil prices climbed higher on Friday on falling supplies in certain parts of the world, and optimism about the outlook for energy demand.

The outlook for oil demand improved after data showed an expansion in manufacturing activity in China in March.

Chinese services activity expanded at the fastest pace in nearly 12 years, and construction activity remained strong, boosting the outlook for growth this year.

West Texas Intermediate Crude oil futures for May ended higher by $1.30 or about 1.8% at $75.67 a barrel.

WTI crude futures gained about 9.2% in the week, but dropped 1.8% in May, and lost about 6% in the January-March quarter.

Brent crude futures settled at $79.77 a barrel today, gaining $0.50 or about 0.6%.

Oil prices were also supported by data showing a drop in U.S. consumer prices in February that raised hopes the Federal Reserve will be less aggressive with interest rate hikes.

Data from the Commerce Department showed the U.S. Personal Consumption Expenditure index, the Federal Reserve's preferred inflation gauge, rose 0.3% in February on a monthly basis, compared with a 0.6% rise in January.

The Organization of the Petroleum Exporting Countries and allies, collectively known as OPEC+ is likely to stick to their output deal at the meeting scheduled to take place on Monday (April 3).