Oil prices rose Friday, reversing some recent losses on a softer dollar, although concerns over a supply glut and weakening demand still put crude on course for a weekly decline.
At 04:55 ET (09:55 GMT), Brent oil futuresfor January rose 1.3% to $64.21 a barrel, and West Texas Intermediate crude futures rose 1.4% to $60.26 a barrel.
Oil was headed for a second straight week in red, having touched a near three-week low as a prolonged U.S. government shutdown also sparked concerns over sluggish fuel demand in the country.
Softer dollar provides oil with some near-term relief
Crude prices took some support from a weaker dollar, as concerns over a cooling U.S. economy pulled the greenback off three-month highs.
A softer dollar benefits commodities priced in the greenback, given that it makes them cheaper for international buyers.
The greenback was pulled off recent highs by private data showing some signs of weakness in the U.S. labor market, which in turn sparked some bets on a December interest rate cut by the Federal Reserve. Markets placed greater focus on private economic readings after a prolonged government shutdown delayed the release of several official prints on the U.S. economy.
Concerns over a weaker U.S. economy also limited any major gains in crude, amid growing concerns over cooling demand in the world’s biggest fuel consumer.
