Oil higher on optimism for firmer crude demand post US stockpile drawdown
TOKYO (Reuters) – Oil prices edged higher in early trade on Friday, extending a rally into a third day, as investors weighed hopes for strong fuel demand after a larger-than-expected drawdown in U.S. crude stocks, brushing off worries about a global economic slowdown.
Brent crude futures climbed 7 cents, or 0.1%, to $96.66 a barrel by 0030 GMT after settling 3.1% higher on Thursday. U.S. West Texas Intermediate crude was at $90.65 a barrel, up 15 cents, or 0.2%, following a 2.7% increase in the previous session.
Still, the benchmark contracts were headed for weekly losses of about 1.5%.
“The oil market gained as bullish U.S. weekly data bolstered optimism for improved fuel demand for the near-term,” said Satoru Yoshida, a commodity analyst with Rakuten Securities.
