Oil on track for fourth consecutive week of gains

Oil headed for a fourth straight weekly gain, supported by a tightening global market and a weaker dollar. U.S. crude rose nearly 2 percent on the week and rose to $83 a barrel, its longest winning streak since June. The rally was driven by improving fundamentals after OPEC+ cut supplies and sharp buying in both Europe and Asia. The Organization of the Petroleum Exporting Countries said on Thursday that the market is bracing for a severe supply gap that will widen as the year progresses. Fatih Birol, the head of the International Energy Agency, said earlier this week that demand could outpace supply in the second half. The IEA’s monthly outlook is due on Friday. Crude has rebounded strongly since hitting a 15-month low in March when OPEC and its allies surprised the market with a significant production cut. The move lifted prices in a year and warded off speculators who had predicted oil would fall. The gains were also driven by dwindling U.S. inventories, weakening flows from Russia and disruptions to Iraqi pipeline supplies. The dollar is on track for a fifth weekly decline, its longest losing streak in nearly three years, amid speculation the Federal Reserve is close to ending its rate-hiking campaign. A weaker dollar is making commodities priced in U.S. currency cheaper for many buyers.