Oil heads for weekly gain

Oil is on course for its biggest weekly gain since early April after Russia signaled it would extend export curbs and U.S. inventories fell further. U.S. crude rose almost 5% this week to settle above $83 a barrel. Moscow has agreed with its OPEC+ partners on further export cuts, details of which will be announced next week, according to Deputy Prime Minister Alexander Novak. Investors are expecting a similar announcement from Saudi Arabia. U.S. crude inventories have been shrinking as the Commonwealth of Petroleum Exporting Countries and its allies have reduced shipments to rebalance the market. Government figures this week showed a decline of more than 10 million barrels, pushing the holdings to their lowest level since December. Oil’s rally this week helped cap a third straight monthly gain, the U.S. benchmark’s longest streak of gains since mid-2022. Additional support for prices came from speculation that the Federal Reserve will not need to hike interest rates further. Meanwhile, in Asia, Beijing has taken more steps to shore up its faltering economy, improving the outlook for energy consumption. “The oil market is still trading with a tight supply mentality,” said Gao Mingyu, Beijing-based chief energy analyst at SDIC Essence Futures Co., referring to moves by Moscow and OPEC+ ally Riyadh. There were now some positive signs in China’s economy, including in the real estate sector, Gao said.