Oil edges higher, on track for weekly gain on strong economic growth
Oil prices edged slightly higher in choppy trading on Friday, heading for a second weekly gain as positive U.S. economic growth and signs of Chinese stimulus boosted demand expectations, while Middle East supply concerns added further support.
Brent crude futures were up 53 cents, or 0.7%, at $82.93 a barrel by 1:48 p.m. ET (1848 GMT), and touched $83.57, their highest price since November.
U.S. West Texas Intermediate crude was up 20 cents, or 0.3% at $78.19.
«There has been a lot of money on the sidelines awaiting opportunity in crude and I think we're seeing some of that come back into the space as the fundamentals for crude supplies seem to be tightening,» said Dennis Kissler, senior vice president of trading at BOK Financial.
Brent crude and the U.S.
benchmark were set for weekly gains of nearly 6%. Both were on track for their biggest weekly increase since the week ending Oct. 13 after the start of the Israel-Hamas conflict in Gaza.
Oil was also boosted this week by a larger than expected drawdown in U.S.
crude stockpiles. The depletion in inventories, especially around the NYMEX futures delivery point at Cushing in Oklahoma and across the Midwest, could create a squeeze on nearby futures prices.
Supply concerns are evident in the structure of Brent futures. The premium of the first-month contract to the sixth on both Brent and WTI rose to the highest since November, indicating a perception of tighter prompt supply.
