Oil prices set for second week of gains on signs demand improving

 
INA-sources
 
Crude oil futures were little changed on Friday but were set to rise for a second week amid signs of improving demand and falling oil and fuel inventories in the U.S., the world's biggest oil consumer.
Brent futures for August settlement dipped 15 cents to $85.56 a barrel by 0356 GMT after rising 0.8% in the previous session.
U.S. West Texas Intermediate crude futures for August delivery was down 14 cents to $81.15 per barrel. The July contract expired on Thursday at $82.17 a barrel, up 0.7%.
Prices have risen about 5% since the beginning of the month to the highest level in over seven weeks.
U.S. government data released on Thursday showed total product supplied, a proxy for the country's demand, rose by 1.9 million barrels per day (bpd) on the week to 21.1 million bpd.
 
"Signs of stronger demand in Asia also boosted sentiment. Oil refineries across the region are bringing back some idled capacity after maintenance," analysts at ANZ Research said.

Data released on Friday showed Japan's core consumer prices last month gained 2.5% from a year earlier, growing from the previous month and keeping the country's central bank on track to raise interest rates in the coming months.

Weighing on prices were U.S. data released on Thursday that showed a decline in new unemployment claims, which may lead the Federal Reserve to keep interest rates unchanged. Higher interest rates typically limit economic growth and, in turn, oil demand.
 
Source: Reuters