Oil prices head for weekly gains amid signs of improving demand

Oil prices rose during Asian trading hours, today, Friday, and the benchmark Brent crude oil is heading to record its first weekly increase in three weeks, supported by indications of improving global demand and slowing inflation in the United States, the largest oil consumer.

According to Reuters, Brent crude prices rose 21 cents, or 0.3%, to $83.48 per barrel by 00:18 GMT. US West Texas Intermediate crude futures rose 18 cents, or 0.2%, to $79.41 per barrel.

Brent crude futures are heading for a weekly gain of 1%, while West Texas crude futures are heading for a weekly gain of 1.4%.

Recent declines in oil and refined product inventories in major global trading centers have sparked optimism about oil demand growth and reversed the trend of rising inventories that had weighed heavily on crude oil prices in previous weeks. As of yesterday, Thursday, Brent crude futures had fallen by about 10% from their peak price this year, which reached $92.18 per barrel on April 12.

Oil and fuel inventories in the United States fell last week while medium distillate fuel inventories in Singapore fell to their lowest level in nearly three months this week.