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Oil rises, on track for biggest weekly gain since July

Reuters  |  NEW YORK 

By Jessica Resnick-Ault

NEW YORK (Reuters) - Oil prices rose on Friday and were headed for their largest weekly gain since July, amid support from concerns over the prospect of Western military action in and reports of dwindling global

The prospect of military action in that could lead to confrontation with hung over the but there was no sign a U.S.-led attack was imminent.

Traders sought to lock in long crude positions ahead of the weekend, said John Kilduff, at hedge fund Management.

"The geopolitical jitters just keep getting priced in here more and more, as we get closer to the moment of the strikes, if there are any," Kilduff said, noting posed a risk to global stability because of its relationship with other powerful

"is a client state of both and and the risk for escalation is quite high and I think that is what the market is worried about."

Brent crude recovered from losses early in the session and was up 67 cents to $72.69 a barrel, and set for about a $5 weekly gain, or 8 percent.

U.S. Intermediate (WTI) crude futures rose 36 cents to $67.43 a barrel, up 8 percent for the week.

On Wednesday, both hit their highest since late 2014 after U.S. warned missiles "will be coming" in response to a in and after said it intercepted missiles over

On Thursday, Trump tweeted that an attack on "could be very soon or not so soon at all."

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

A global surplus is close to evaporating, OPEC said on Thursday, adding 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 industrialized 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 to the second-highest level on record.

U.S. drillers added seven in the week to April 13, bringing the total count to 815, the highest since March 2015, General Electric Co's firm said in its closely followed report on Friday.

(Additional reporting by in New York, Osamu Tsukimori in Tokyo and Shadia Nasralla in London; Editing by Bernadette Baum)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Fri, April 13 2018. 23:54 IST