Oil Prices Trending Up for Fourth Week in a Row

Oil prices remained relatively stable in Asian trading on Friday but were set for a fourth consecutive week of gains. They held near their highest levels since late April, driven by optimistic expectations for strong summer fuel demand and concerns over supply. Brent crude futures, which have risen 7% over the last four weeks, slipped 2 cents to $87.41 a barrel by 0143 GMT.

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U.S. West Texas Intermediate (WTI) crude futures, having risen by 9% over the past four weeks, edged up to $83.97, increasing by 9 cents from Wednesday's close. Due to the U.S. market being closed for the Fourth of July holiday on Thursday, trading volume was reduced and there was no settlement for WTI. 

Oil rose this week on strong summer demand expectations in the United States, the world's largest oil consumer. "Market sentiment has been supported this week by strong mobility indicators and intensifying geopolitical tension in the Middle East," analysts at ANZ Research said in a note on Friday.

The U.S. Energy Information Administration (EIA) announced a substantial reduction of 12.2 million barrels in inventories last week, significantly exceeding analysts' predictions of a 700,000-barrel draw. 

Data released on Wednesday revealed that initial applications for U.S. unemployment benefits rose last week, alongside an increase in overall jobless numbers. Analysts suggested that this could potentially expedite interest rate cuts by the U.S. Federal Reserve, thereby supporting the oil markets. 

On the supply side, Reuters reported on Thursday that Russian oil producers Rosneft and Lukoil are planning to significantly reduce oil exports from the Black Sea port of Novorossiisk in July. 

Meanwhile, Saudi Aramco reduced the price for its flagship Arab Light crude, which will be sold to Asia in August, to $1.80 per barrel above the Oman/Dubai average. This adjustment highlights the pressure OPEC producers are facing as non-OPEC supply continues to increase. Traders were also tracking the war in Gaza and elections in France and the United Kingdom, analysts said.