Oil prices rose on Friday trading, but are
heading for the biggest weekly losses since July amid fears of falling demand
due to the contraction that faces the global economic growth.
Brent crude futures rose a 0.52 percent at
$58.01 a barrel, to complete its four consecutive weekly loss, while crude
oil recorded high of $58.09 a barrel. While West Texas crude was 0.53
percent down at $52.83 a barrel, after the prices opened at $52.78 a barrel.
This week, economic data showed that
manufacturing activity contracted in several major economies, most
notably the United States, the euro zone and the United Kingdom, raising
concerns about slowing global economic growth, and therefore a decline in oil
demand.
The latest hit came on Thursday after a report
showing that the U.S. ISM non-manufacturing PMI fell to a six-month low of 49.5
last month from 50.6 the previous month, compared with analysts' expectations
of 50.3.
Later in the day, markets will focus on the
U.S. non-farm payrolls, which may signal American employers created 145,000
jobs in September.
Brent crude is currently headed for a weekly
decline of more than 5 percent, resuming its plunge from the peak of $71.95 on
September 16.
On the supply side, Saudi Energy Minister
Prince Abdul Aziz bin Salman said on Thursday that the world's largest oil
exporter has fully recovered oil production after last month's attacks on its
facilities that cut more than 5% of global oil supplies.
U.S. Energy Information Administration data
also showed crude inventories increased by 3.1 million barrels to 422.6 million
barrels in the week ended September 27.
Baker Hughes is scheduled to announce data for U.S. oil rigs
later in the day in the week ending today.