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Oil heads for biggest weekly gain since July

Reuters  |  LONDON 

By Nasralla

LONDON (Reuters) - Oil prices edged higher on Friday, heading for their largest weekly gain since July after U.S. Trump's comments about possible military action in and reports of dwindling global

Brent crude rose by 44 cents to $72.46 a barrel at 0821 GMT, up about 8 percent on the week.

NYMEX crude for May delivery gained 45 cents to $67.52, putting the contract on track for a weekly jump of nearly 9 percent.

Both benchmarks hit their highest since late 2014 on Wednesday after warned that missiles "will be coming" in response to a in and after said it intercepted missiles over

tweeted on Thursday that an attack on "could be very soon or not so soon at all", raising the prospect that an attack might not be as imminent as he seemed to suggest the previous day.

"This has been a very strong week for crude oil futures, with a lot of geopolitical concerns helping to drive the rally. As we start the last day of the week, we feel that the geopolitical risks are not as high as feared three days ago," Petromatrix said in a note.

"The Syrian escalation risk cannot be fully written off, but we view that it deserves less of a premium than three days ago."

A global surplus is close to evaporating, OPEC said on Thursday, adding that its collective output fell to 31.96 million barrels per day (bpd) in March, down 201,000 bpd from February.

Vienna-based OPEC and its allies are poised to extend their supply reduction pact into 2019 even as the global glut of crude looks set to be eradicated by September, OPEC told

The International Energy Agency (IEA), which coordinates the of industrialised nations, signalled on Friday that markets could become too tight if supply remains restrained.

"It is not for us to declare on behalf of the agreement countries that it is 'mission accomplished', but if our outlook is accurate, it certainly looks very much like it," the IEA said.

Meanwhile China's March climbed month on month to the second-highest level on record, calculated on a daily basis.

(Additional reporting by in Tokyo; Editing by David Goodman)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 14:47 IST