By Laila Kearney
NEW YORK (Reuters) - Oil prices fell about 2 percent on Friday amid worries about a global economic slowdown, but futures were set to end the week higher, keeping some gains from a week-long rally spurred by U.S.-China trade hopes.
Brent crude futures
Both benchmarks were set for their second week of gains, with Brent rising about 6 percent and WTI up nearly 8 percent.
Markets were supported earlier this week by hopes that an all-out trade war between Washington and Beijing might be averted. Three days of talks concluded on Wednesday with no concrete announcements, but higher-level discussions may convene later this month.
"Right now I think the market is in a holding pattern above our recent lows and it's looking for its next driver," McGillian said.
Investors remained concerned about a slew of recent economic data that has raised worries about a global economic slowdown.
China plans to set a lower economic growth target of 6-6.5 percent in 2019 compared with last year's target of "around" 6.5 percent, policy sources told Reuters, as Beijing gears up to cope with higher U.S. tariffs and weakening domestic demand.
On the supply side, oil markets have received support from supply cuts led by the Organization of the Petroleum Exporting Countries. The deal is aimed at reining in a glut that emerged in the second half of 2018.
Playing a key part in the emerging glut was the United States, where crude oil production
Consultancy JBC Energy this week said it was likely that U.S. crude production was "significantly above 12 million bpd" by this month.
U.S. energy firms, however, this week cut four oil rigs, the second week of declines, General Electric Co's
(Additional reporting by Noah Browning in London, Henning Gloystein in Singapore, Stephanie Kelly and Scott DiSavino in New York; Editing by Marguerita Choy and Alexander Smith)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)