Shafaq News/ Oil prices, which werelittle changed in early Asian trade on Friday, were on track to end higher fora second straight week following a large cut in U.S. interest rates anddeclining global stockpiles.
Brent futures, which were trading 19cents or 0.3% lower at $73.69 a barrel at 0027 GMT on Friday, gained 4.3% thisweek. U.S. crude, which was up 6 cents at $72.01 a barrel, has registeredweekly gains of 4.8%.
The benchmarks have been recoveringafter they fell to near three year-lows on Sept. 10, and have registered gainsin five of the seven sessions since then.
The U.S. central bank cut interestrates by half a percentage point on Wednesday. Interest rate cuts typicallyboost economic activity and energy demand, but some also saw the large cut as asign of a weak U.S. labour market.
Crude inventories in the U.S., theworld's top producer, fell to a one-year low last week, government data showedon Wednesday.
A counter-seasonal oil marketdeficit of around 400,000 barrels per day (bpd) will support Brent crude pricesin the $70 to $75 a barrel range during the next quarter, Citi analysts said onThursday, but added prices could plunge in 2025.
Crude prices were also beingsupported by rising tensions in the Middle East. Walkie-talkies used byLebanese armed group Hezbollah exploded on Wednesday following similarexplosions of pagers the previous day.
Security sources said Israeli spyagency Mossad was responsible, but Israeli officials did not comment on theattacks.
Weak demand from China's slowingeconomy was weighing on prices, with refinery output in China slowing for afifth month in August. China's industrial output growth also slowed to afive-month low last month, and retail sales and new home prices weakenedfurther.
(REUTERS)