Oil prices rise marginally, near highest level since 2014

Oil drilling rigs

Oil prices rose marginally today, Jan. 17, nearing its highest level in more than seven years, as investors expect the supply tightening of crude to continue, and the economic growth data in China.

Government data in China revealed today that GDP grew by 4% year-on-year (YoY) in the fourth quarter of 2021, which is a faster pace than analysts' expectations that the economy will grow 3.6%, according to CNBC.

While the second largest economy in the world grew by 8.1% in the last year.

Vandana Hari, Founder and CEO of Vanda Insights, told Reuters that global demand for crude may witness a rise next summer, especially from Europe and the US, exceeding the levels of last year, if COVID-19 turns from a pandemic to an endemic disease.

She also confirmed that geopolitical threats to supplies also support the upward trend of crude prices.

Brent crude for March delivery rose 0.22% to $86.25 a barrel, at 09.05am Makkah time, after recording $86.71 a barrel in early trade - the highest level since October 2014.

WTI delivery for February delivery also rose 0.44% to $84.19 a barrel.