Oil up 1% on signs of slow US output, posts first weekly loss in 8 weeks | Reuters

Oil up 1% on signs of slow US output, posts first weekly loss in 8 weeks | Reuters

Oil prices rose about 1% on Friday on signs of slowing U.S. output, but both crude benchmarks also ended their longest weekly rally of 2023 on mounting concerns about global demand growth.

West Texas Intermediate (WTI) crude futures gained 86 cents, or 1.1%, to settle at $81.25 a barrel, and Brent crude futures rose 68 cents, or 0.8%, to settle at $84.80 a barrel.

Both benchmarks pushed higher on Friday after industry data showed that the U.S. oil and natural gas rig count, an early indicator of future output, fell for the sixth week in a row. A slump in U.S. production could exacerbate an anticipated supply tightness through the rest of this year.

Those concerns, spurred on by output cuts from the Organization of the Petroleum Exporting Countries and allies, helped oil prices gain for seven straight weeks since June. Brent crude gained about 18% and WTI gained 20% over the seven weeks ended Aug. 11.

This week, however, oil prices dropped about 2% from last week, as a worsening property crisis in China added to concerns about the country's sluggish economic recovery and reduced investors appetite for risk across markets.