Concerns about demand cap oil’s gains

Oil prices rose on Friday and were broadly stable for the week as Saudi Arabia’s pledge to cut production helped calm concerns about demand growth.

And by 0932 GMT, Brent crude futures rose 36 cents, or 0.5 percent, to $ 76.32 a barrel, and West Texas Intermediate crude rose 34 cents, or 0.5 percent, to $ 71.63 a barrel.

The two benchmarks fell about a dollar on Thursday, recouping some of their losses, which earlier exceeded three dollars, after Washington and Tehran denied the validity of a Middle East Eye report that they were close to reaching a nuclear agreement, something that would return Iranian oil to global markets. .

Oil prices rose earlier in the week after Saudi Arabia pledged large production cuts, but the gains were pared after rising US fuel inventories and weak data on Chinese exports.

Concerns about a slow recovery in fuel demand in China overshadowed expectations of tight supply and increased demand for oil as the United States enters the summer holiday season.

Although China’s economic recovery is slower than expected, India, the world’s third largest oil consumer, has managed to maintain economic momentum.

Strong factory activity helped boost India’s fuel consumption in May, pushing diesel sales to a record high.

Some analysts expect oil prices to rise if the Federal Reserve (the US central bank) does not raise interest rates at its next meeting on June 13-14.