Oil prices rise on signs of improving demand, gain 3% on week | Reuters

Oil prices rise on signs of improving demand, gain 3% on week | Reuters

Oil prices rose as much as $1 on Friday on signs of improving fuel demand, although further gains were capped as the market awaited clues from the U.S. Federal Reserve chairman on the outlook for rate hikes in a speech later in the day.

Brent crude futures climbed 99cents, or 1%, to $100.33 a barrel by 0620 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 98 cents, or 1.1%, to $93.50. Both contracts jumped in early trade by as much as $1 after slumping about $2 on Thursday.

Despite uncertainty over the pace of rate hikes in the United States to tackle soaring inflation, worries about oil demand destruction eased this week, putting the benchmark oil contracts on track for gains of around 3% for the week.

ANZ Research analysts said comments from some U.S. central bank officials ahead of Chair Jerome Powell's speech on Friday had cast a cloud over the economic backdrop.