Oil prices edge up on signs of improving demand, market awaits Fed’s clue

MELBOURNE (Reuters) – Oil prices rose in early trade on Friday on signs of improving fuel demand, though gains were capped as the market awaited clues from the U.S. Federal Reserve chairman on the outlook for rate hikes in a speech later in the day.

Brent crude futures climbed 46 cents, or 0.5%, to $99.80 a barrel at 0051 GMT. U.S. West Texas Intermediate (WTI) crude futures also rose 48 cents, or 0.5%, to $93.00 a barrel. Both slumped about $2 on Thursday.

Despite uncertainty over the pace of rate hikes in the United States to tackle soaring inflation, worries about oil demand destruction eased this week, putting both benchmark oil contracts on track for gains of around 3% for the week.