Oil prices on track for first weekly rise in two months

General view of oil tanks and the Bayway Refinery of Phillips 66 in Linden, New Jersey, U.S., March 30, 2020. REUTERS/Mike Segar/file photo

Oil prices rose in early Asian trade on Friday, on track to notch their first weekly rise in two months after benefiting from a bullish forecast from the International Energy Agency (IEA) on oil demand for next year and a weaker dollar.

Brent futures rose 9 cents to $76.70 a barrel at 0006 GMT. U.S. West Texas Intermediate (WTI) crude climbed 10 cents to $71.68.

Both benchmarks are on track for a modest weekly gain, having been lifted by a mid-week announcement from the U.S. Federal Reserve that it is likely to cut borrowing costs next year.

The dollar fell to a four-month low on Thursday after the U.S. central bank indicated interest rate hikes have likely ended and lower borrowing costs are coming in 2024.

READ: OPEC+ agrees to deepen voluntary oil output cuts

A weak dollar makes dollar-denominated oil cheaper for foreign purchasers.

The European Central Bank, meanwhile, pushed back against bets on imminent cuts to interest rates on Thursday by reaffirming that borrowing costs would remain at record highs despite lower inflation expectations.

World oil consumption will rise by 1.1 million barrels per day (bpd) in 2024, the International Energy Agency said in a monthly report, up 130,000 bpd from its previous forecast, citing an improvement in the outlook for U.S. demand and lower oil prices.

READ: OPEC sticks to 2024 oil demand growth forecast

The 2024 estimate is less than half of the Organization of the Petroleum Exporting Countries’ (OPEC) demand growth forecast of 2.25 million bpd.

Week economic data from China, the world’s second-largest oil consumer, has added pressure on oil prices in recent weeks.

Monthly data on the latest Chinese retail sales, industrial production, business investment, unemployment and house prices for November will be released later on Friday.