WASHINGTON (dpa-AFX) - Oil futures posted their first weekly gain in two months despite settling on a slightly weak note on Friday.
An upward revision in oil demand forecast by the International Energy Agency (IEA), and a weak dollar pushed up crude oil prices over the past few sessions.
Also, the Federal Reserve's dovish tone that signaled three interest rate cuts in 2024 weighed on dollar in the past two sessions, contributing significantly to the uptick in oil prices.
However, the dollar rebounded on Friday and sent oil prices down sharply. The currency gained after New York Fed President Williams pushed back against market bets of multiple rate cuts by the central bank next year.
Still, recovering well from the day's lows, oil futures ended the day's session with a less pronounced loss.
West Texas Intermediate Crude oil futures for January ended down $0.15 at $71.43 a barrel, well off the session's low of $70.30 a barrel. WTI crude futures posted a modest 0.2% gain for the week.
Brent crude futures were up marginally at $76.62 a barrel a little while ago.
The IEA lifted its oil demand forecast for 2024, citing an improvement in the outlook for U.S. demand and lower oil prices.
Oil prices also found support from the People's Bank of China's decision to ramp up liquidity injections through medium-term policy loans in the face of challenges from a housing slump and subdued demand.
A report from Baker Hughes showed the oil and gas rig count fell by 3 to 623 in the week to December 15.
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