Oil prices rose on Friday on strong economic data in the euro area and the UK, but futures fell this week amid the weight of interest rate and demand uncertainty.
Brent futures were up 56 cents at $81.66 a barrel. West Texas Intermediate crude (WTI) rose 50 cents to $77.87 a barrel.
Brent reported a 5.4% weekly loss, while WTI fell 5.6%.
Both crude oil gauges fell more than 2% on Thursday and fell to their lowest levels since the OPEC countries’ unexpected output cut announcement in early April amid recession fears and rising US gasoline inventories.
Eurozone recovery accelerated with April’s service increase. Strong economic data from the eurozone and the UK pushed oil prices higher on Friday.
The euro zone economic recovery unexpectedly picked up this month as the bloc’s dominant services industry saw already buoyant demand growth and offset a deepening decline in manufacturing, according to surveys.
The economy currently appears to be recovering from a weak winter, but manufacturing weakness remains a cause for concern and dampens the rise.
British businesses also reported a jump in activity and the slowest input cost inflation in more than two years, according to an industry survey.
Crude oil processing by refineries in India remained near record highs in March, meeting strong seasonal demand at the world’s third-largest oil consumer, according to interim government data.
Tighter supply expectation boosted support as analysts lowered OPEC’s production targets and expect stocks to be withdrawn from next month as a result of rising Chinese demand.
A predictable contraction in supply will likely push prices up in the medium term.
Oilfield services giant SLB beat Wall Street’s first-quarter profits as rising crude oil prices and tight supplies fueled demand for its services.
However, economic uncertainty and the possibility of rising interest rates continue to weigh on oil markets.
Meanwhile, uncertainty over demand for the upcoming summer driving season continues to preoccupy traders.
The US Federal Reserve, the Bank of England and the European Central Bank are expected to raise interest rates when they meet in the first week of May.
Energy services company Baker Hughes Co said it added oil and gas rigs to its US supply for the first time in four weeks that US energy firms this week.
The number of oil rigs, an early indicator of future production, rose three to 591 in the week of April 21.
