• West Texas Intermediate futures traded near $81 a barrel after closing 1.1% higher on Thursday. US economic growth beat expectations in the last quarter of 2022, but there’s still a considerable risk of a recession this year. The Federal Reserve is expected to boost interest rates further next week.
• Oil has recovered from a steep drop at the start of the year, largely on hopes that Chinese consumption will recover rapidly following years of strict virus lockdowns. A weaker dollar has added to tailwinds for commodities priced in the currency, and liquidity is returning to the futures market.
• Traders are assessing the potential fallout from European Union sanctions on Russia’s seaborne shipments of petroleum products early next month. The EU is considering a plan to cap the price of premium refined fuel exports like diesel at $100 a barrel, with a lower $45 cap for discounted products.