US crude rises 3% to settle at $48.51 as investors move toward riskier assets
- U.S. crude still headed for weekly loss.
Oil prices rose on Friday as the stock market strengthened and the U.S. dollar weakened, but U.S. crude futures remained on track to close the week down as investors remained worried about the global oil glut.
The week's trading was defined by bearish data about Chinese oil demand and rising crude production in the United States.
WTI crude futures for September delivery settled up 3.02 percent, or $1.42, to $48.51 per barrel.
"It's following the equity markets, and impacted by the dollar," said Tariq Zahir, founding member at Tyche Capital Advisors. Fundamentals for oil remain bearish as U.S. driving season nears an end, he cautioned.
Both benchmarks are on track to close the week lower, after bearish data early on.
"The main question is whether we will continue to see the kind of inventory draws that may show the supply-demand balance is tightening over the next few weeks," said Gene McGillian, director of market research at Tradition Energy.
Investors also digested rig count data from Baker Hughes which showed that U.S. rigs fell by five to 763.
Nigeria's crude oil exports are expected to slip to 1.72 million barrels per day (bpd) in October, loading programmes showed on Friday.
Signs of supply tightness have started appearing in the United States, the world's biggest oil consumer.
Despite a 13 percent jump in production since mid-2016 to 9.5 million barrels per day, the country's commercial crude inventories have fallen 13 percent from their March records to below 2016 levels.