Oil prices stabilised on Friday, heading for their first weekly rise since the end of November, as additional sanctions on Iran and Russia ratcheted up supply worries, while a surplus outlook weighed on markets.
Brent crude futures edged up 7 cents to $73.48 a barrel by 0434 GMT, while U.S. West Texas Intermediate crude was at $70.11 a barrel, up 9 cents.
Both contracts are on track for a weekly gain of more than 3% as concerns about supply disruption from tighter sanctions on Russia and Iran, and hopes that Chinese stimulus measures could lift demand in the world’s No. 2 oil consumer support prices.
Recent stabilisations came after oil defended a key technical level of $71, said Yeap Jun Rong, market strategist at IG. “But there has not been much conviction to prompt a stronger price recovery just yet,” he added.
Chinese data this week showed crude imports grew annually for the first time in seven months in November, driven by lower prices and stockpiling.
“We have seen a bit of a recovery in refinery margins since the September lows, but don’t think it’s anything to justify the November crude import volumes,” said Warren Patterson, ING’s head of commodities research.
