2017.10.2003:33:00UTC+00Oil Prices Rally on Improving Fundamentals

Oil prices rallied on Friday, propped up by indications of tightening supply and demand fundamentals. However, a warning regarding excessive China economic optimism still somewhat affected sentiment in the markets.

The international benchmark for Brent crude futures traded at $57.45 per barrel, up 22 cents or 0.5 percent. The U.S. WTI crude futures stood at $51.54 per barrel, up 25 cents or 0.5 percent.

The higher prices came after over a one percent decline in prices in the previous session, which was attributed to profit-taking after four days of straight gains. The decline was also attributed to a sudden market decline which spooked traders after veteran and outgoing head of China's central bank cautioned of a Minsky moment, which refers to excessive optimism regarding economic expansion boosted by massive debt and speculative investment.

Much of the concern eased on Friday as analysts said the markets focused on indicators of a tightening supply and demand fundamentals.

U.S. commercial crude oil stocks have fallen 15 percent from their March records to 456.5 million barrels, below levels seen in the previous year.