Brent crude headed for its biggest weekly gain since December 2016 as Saudi Arabia’s production cuts outweighed concerns over the health of the global economy.
The global benchmark is on track for an 9.4 percent advance this week, ending three consecutive weeks of losses. Prices rallied as Saudi Arabia reduced output even before OPEC’s cuts deal went into effect this month. Yet fears over global oil demand persisted ahead of further trade negotiations between the U.S. and China, where the central bank lowered reserve requirements for lenders on Friday to support growth.
Brent for March settlement rose as much as $1.33, or 2.4 percent, to $57.28 a barrel on the ICE Futures Europe exchange, after earlier falling as much as 1.1 percent. The benchmark crude was at $57.14 a barrel at 10:40 a.m. in London.
West Texas Intermediate for February delivery rose 95 cents, or 2 percent, to $48.04 a barrel on the New York Mercantile Exchange. Prices are up 5.9 percent this week, the most since June. The March contract traded at a discount of $8.77 to Brent.
Source : Bloomberg