Oil prices steady but set for weekly gain on supply cut optimism
Oil prices were steady on Friday but are set for their first weekly gain in six weeks on the assumption major producers will implement deeper output cuts to offset slowing demand in China, the world’s second-largest crude user.
Brent crude futures fell 9 cents to $56.25 a barrel by 0234 GMT, after gaining 1% the previous session. Brent is 3.3% higher for the week, the first increase since the week of Jan. 10.
U.S. West Texas Intermediate (WTI) futures were down by 1 cent to $51.41 a barrel. The contract rose 0.5% on Thursday and is now 2.2% higher for the week.
Crude prices have plunged about 20% from their 2020-peaks on Jan. 8 as oversupply concerns combined with worries about large fuel demand declines in China as the country’s quarantine to fight a coronavirus outbreak has halted economic activity.
