Oil Update: Demand forecasts help Oil post weekly gains

With buoyant demand forecasts from International Energy Agency (IEA), Oil prices are all set to gains for the week. Prices were lower on Friday (today) on the North Korean tension but strong demand outlook have given a degree of positive momentum to the prices during the last fifteen days.

U.S. West Texas Intermediate crude was down 17 cents, or 0.4 percent, at $49.72 a barrel at 0620 GMT. It briefly broke above $50 on Thursday, hitting a four-month high, and finished 1.2 percent higher at $49.89, its highest close since July 31.3

Brent crude futures were down 23 cents, or 0.4 percent, at $55.24 a barrel. They gained 0.6 percent to settle at $55.47 the previous session, the highest close since April 13.

Us crude is well on its way to post 5% week on week gains, helped by recovering Crude markets and refineries resuming their operations in Texas, USA. Brent is poised for 2.7 percent gain and a third consecutive weekly rise.

OPEC announced this week that it sees a rise in demand for its oil in future, also notifying that oil market is becoming tighter and glut is hopefully coming to an end. The claim was corroborated by International Energy Agency saying that demand for oil is expected to inch up and move within a range of $ 50-60 as output curbs the prolonged glut in oil markets.

Meanwhile in the commodities market, Gold and some selective currencies (yen) were higher after North Korea tested a missile over Japan and into the Pacific.