Oil prices set for weekly gains on renewed enthusiasm around US economy
Shafaq News/Oil prices edged lower in early Asian trading on Friday, but the market'sbenchmarks were set for a second consecutive weekly gain after upbeat U.S.economic data eased investor worries about a potential recession in the top oilconsuming nation.
Brent crudefutures fell 16 cents, or 0.2%, to $80.88 per barrel by 0024 GMT. U.S. WestTexas Intermediate crude futures fell 23 cents, or 0.3%, to $77.93 a barrel.
Brent wasset to advance 1.6% on a weekly basis, while WTI was on track for gains ofabout 1.5%.
Investorsfound renewed optimism around U.S. economic growth after a string of datareleases this week.
On Thursday,a government report showed U.S. retail sales rose 1% last month, well abovemarket forecasts for a 0.3% gain. Also on Thursday, data showed that fewerAmericans filed new applications for unemployment benefits last week.
"USeconomic data released this week has helped to temper fears of a sharp slowdownin the US economy," analysts at energy consultancy FGE said.
They noted thatoil markets would now return their full focus to fundamentals and geopolitics,with markets anticipating retaliatory attacks from Iran against Israel over thekilling of a Hamas leader in Tehran.
A freshround of negotiations began on Thursday to secure a ceasefire in the Gaza war,even as Israeli troops continued their assault on the Palestinian enclave.
The talks,which have been boycotted by Hamas, were extended and will resume in the Qataricapital Doha on Friday.
Keeping alid on oil prices, demand signals from the U.S. and China have been shaky. U.S.crude inventories posted a surprise jump earlier this week, whereas Chineserefineries sharply lowered crude processing rates last month on tepid fueldemand.
TheOrganization of the Petroleum Exporting Countries (OPEC) on Monday pared itsdemand outlook for this year citing softer expectations for China.
(Reuters)
