Oil Prices on Track for Fourth Straight Week of Gains

FILE PHOTO: Oil pump jacks are seen at Vaca Muerta shale oil and gas drilling, in the Patagonian province of Neuquen, Argentina January 21, 2019. REUTERS/Agustin Marcarian/File Photo

Oil prices dipped on Friday but were on track for a fourth straight week of gains and were near their highest levels since late April on hopes of strong summer fuel demand and some supply concerns.
Brent crude futures, which have risen 7% over the last four weeks, slipped 31 cents, or 0.4%, to $87.12 a barrel by 0415 GMT, Reuters said.
US West Texas Intermediate (WTI) crude futures, which have climbed 9% over the past four weeks, was at $83.70, down 18 cents, or 0.2%. With the US market shut for the Fourth of July holiday on Thursday, trading was thin and there was no settlement for WTI.
Oil rose this week on strong summer demand expectations in the United States, the world's largest oil consumer.
"Market sentiment has been supported this week by strong mobility indicators and intensifying geopolitical tension in the Middle East," analysts at ANZ Research said in a note on Friday.
The US Energy Information Administration (EIA) reported a massive 12.2 million barrel draw in inventories last week, compared with analysts' expectations for a draw of 700,000 barrels.
US data on Wednesday showed that first-time applications for unemployment benefits increased last week while jobless numbers also rose, which analysts said could potentially hasten interest rate cuts by the Federal Reserves and support oil markets.
On the supply side, Reuters reported on Thursday that Russia's oil producers Rosneft and Lukoil will sharply cut oil exports from the Black Sea port of Novorossiisk in July.
Traders were also tracking the war in Gaza and elections in France and the United Kingdom, analysts said.