Crude oil prices rose on Friday with global benchmark Brent set for its first weekly gain in three weeks on signs of improving global demand amid stronger economic indicators from key consumers China and the US.
Meanwhile, Brent crude rose 21 cents (0.25%) to $83.48 per barrel and West Texas Intermediate (WTI) crude rose 7 cents (0.09%) to $79.30 per barrel.
Brent futures are expected to rise about 1% weekly and WTI is forecast to rise at 1.4%.
Markets were also supported by China's industrial output growth of 6.7% year-on-year in April as recovery in its manufacturing sector accelerated and stronger demand was forthcoming.
Declines in inventories of oil and refined products at major global trading hubs have created confidence in oil demand growth versus a reversal of the stockpile build-up trend that has weighed on crude oil prices in previous weeks.
Recent economic indicators in the US have given confidence to global demand. US consumer prices rose less than expected in April, pushing an interest rate cut by the Fed closer.
The expectation was also supported by Thursday's key data showing stable US jobs sentiment.
Lower interest rates could help weaken the US dollar and drag oil prices lower.
On the supply side, investors are mostly looking for direction through the upcoming OPEC+ meeting on June 1 which is likely to be held online.
A continuation of OPEC+ cuts in oil production after June will likely see prices firmer than moderate expectations in the market.
