Crude oil futures settled higher on Friday on optimism energy demand from China will see a significant increase in the near to medium term. Hopes of less aggressive rate hikes in the United States after data showed consumer price inflation slowed in the month of December also contributed to the advance. Besides, China reported better-than-expected trade figures, and the U.K. economy unexpectedly grew in November. The German economy avoided contracting in the final quarter of the year, boosting the global demand outlook.
Benchmark crude oil futures for February delivery rose $1.47 or 1.9 percent at $79.86 a barrel on the New York Mercantile Exchange. Brent crude for March delivery surged $1.30 or 1.54 percent at $85.33 a barrel (provisional) on London's Intercontinental Exchange.