Oil heads into earnings week

Oil is on course for its best week since October amid rising geopolitical risks. Oil is on course for its biggest weekly gain since October on lingering geopolitical tensions, shrinking U.S. crude inventories and expectations of more government stimulus for major crude importer China. Global benchmark Brent was around $82 a barrel after jumping 3% in the previous session, the first out of a recent narrow range. U.S. crude was trading near a two-month high, around $77 a barrel. The rally was driven by rising tensions in the Middle East, with the U.S. trying to force Iran-backed Houthi rebels in Yemen to halt attacks on commercial shipping. Elsewhere, attacks on refineries in Russia have jeopardized crude flows as the war in Ukraine continues. Oil gained more than 7% in January, boosted by an unexpectedly large draw in U.S. inventories and efforts by Chinese policymakers to shore up the economy. Still, many investors remain cautious amid strong supply from non-OPEC producers and slowing demand growth in major importing countries including India.