Oil prices rose on Friday but are set for a fourth straight weekly decline as global fuel demand growth disappoints, quelling fears of supply disruptions.
Brent crude futures rose 62 cents, or 0.8%, to $80.13 a barrel by 0345 GMT, while WTI crude futures rose 62 cents to $76.93.
Both indices have fallen about 7.3% over the past four weeks, their longest consecutive weekly losses this year.
Disappointing economic data from top oil importer China and a survey showing weak manufacturing activity across Asia, Europe, and the United States have raised the risk of a lackluster global economic recovery that could weigh on oil consumption.
China’s road traffic saw a third consecutive seasonal decline. Weaker U.S. economic data is signaling weakening oil demand.
Falling manufacturing activity in China also weighed on prices, raising concerns about demand growth after June data showed imports and refining activity were lower than last year.
Asian crude imports fell to a two-year low in July on weak demand from China and India, the data showed.
Oil investors are also closely watching developments in the Middle East, where the killings of senior Hamas and Hezbollah leaders have stoked fears the region could be on the verge of full-scale war and disrupt supplies.
Rising geopolitical tensions were reflected in a rising premium for call options as investors embraced the view that prices would rise, with purchases of Brent call options reaching the highest volume since April.
Three-month oil implied volatility rose to 26.6% from a low of 22.6% in mid-July.
