Oil is heading for a 2% weekly gain, supported by demand during the Chinese holiday

Oil prices are heading to record a weekly gain of about two percent after achieving some increase on Friday, as the impact of strong demand during a holiday in China and continued scarcity in the United States overshadowed expectations of possible increases in supplies from Saudi Arabia.

Brent crude futures for November, which expire today, rose five cents to $95.43 a barrel. Brent crude futures for December rose 13 cents to $93.23 a barrel by 0335 GMT.

US West Texas Intermediate crude rose 16 cents to $91.87 a barrel.

Oil prices fell by about 1 percent on Thursday, with traders selling to take profits after prices rose to their highest levels in ten months, and some worried that higher interest rates might affect demand for oil.

What supported prices were improved macroeconomic data from China, the world’s largest oil importer, in addition to strong demand for fuel during the country’s Golden Week holiday, which began on Friday and continues for a week.

A Reuters poll suggested that factory activity in China will stabilize in September, adding to a series of indicators that indicate that the world’s second largest economy is beginning to stabilize. Official data is scheduled to be released on Saturday.

Data on Thursday showed that the US economy maintained a fairly strong pace of growth in the second quarter and activity appeared to accelerate in the current quarter, indicating that strong demand for fuel may continue.

Traders are awaiting the meeting of the Organization of the Petroleum Exporting Countries and its allies, within the framework of the OPEC+ group, next week, to obtain indications about whether Saudi Arabia may want to increase supplies after a jump of about 30 percent in prices during the current quarter.

The OPEC+ Ministerial Committee meeting is scheduled to be held on October 4.

“Next week’s OPEC meeting will be an important indicator for the market with the increasing possibility of a reduction in voluntary supply cuts by Aramco,” National Australia Bank said in a note.