Oil prices gain on expectations of demand growth
Oil prices jumped on Friday’s trade with both Brent and US Crude set to attain another weekly gain as investors believe that efforts to trim a global gut is working.
US crude was up 2 cent at USD 51.58 a barrel at 0110 GMT. The contract is heading for a fourth consecutively weekly gain and is on track for a 9% advance this month.
Brent rose 22 cents to USD 57.63 a barrel, heading for a fifth weekly climb and a 10% gain for September.
The price gains, most of them in the last two-and-a-half weeks, have come as traders anticipated renewed demand from US refiners that were resuming operations after shutdowns due to Hurricane Harvey.
The oil prices are getting support as Turkey’s threats to cut off a pipeline from the Kurdish region of Iraq after a referendum where Kurds voted overwhelmingly in favour of independence.
The Kurdish region exports about 500,000 barrels a day through a pipeline that runs through Turkey to the Mediterranean Sea.