Oil prices holding gains as demand outlook brightens
Oil prices were lower on Friday but largely held gains that had prices flirting with multi-month highs, as the cleanup after hurricanes in the United States gathered pace and the outlook for demand took on a firmer tone.
In other markets, typically safe haven assets like the yen and gold
U.S. West Texas Intermediate crude
"The psychological barrier of $50 per barrel remains a big hurdle for WTI, after it failed to settle above it once again," ANZ bank said in a research note.
Nevertheless, U.S. crude is on track for a nearly 5 percent gain this week, buoyed by the return of refineries after Hurricane Harvey and stronger indications of demand.
Brent is heading for a 3 percent gain and a third consecutive weekly rise.
On Wednesday, the IEA said a global oil glut was shrinking thanks to strong European and U.S. demand, as well as production declines in OPEC and non-OPEC countries.
The Organisation of the Petroleum Exporting Countries (OPEC) earlier forecast higher demand for its oil in 2018 and pointed to signs of a tighter global market, indicating its production-cutting deal with non-member countries is helping to tackle a supply glut.
BP Chief Executive Bob Dudley told Reuters in an interview that oil prices were likely to stay between $50 and $60 as major producers kept output restricted.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
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