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Singapore - Brent crude held steady above $110 a barrel on Friday, set for a second straight week of gains, supported by conflicts in Libya and Ukraine as well as by positive economic data in the world's top two oil consumers, the United States and China.
A recent rally in oil prices, which pushed Brent to a 2½-month peak just above $111 on Thursday, could gain momentum as Asian shares edged up to one-year highs on Friday on signs of improving growth in the world's biggest economies.
Brent crude was up 12 cent at $110.48 a barrel by 09:12. The contract settled 19c lower on Thursday, after earlier touching $111.04, the highest since March 4.
US crude gained 4c to $103.78 a barrel after settling 33c lower, but was still on course for its third weekly gain on the back of a steep drop in US oil inventories last week.
"Brent managed to break through its previous high of $110.60, so I think there is scope for further gains over the coming week," said Ken Hasegawa, commodity sales manager at Newedge Japan.
"But the contract faces solid resistance around $113 and should begin to come back down again," he said.
Positive US and Chinese manufacturing data released on Thursday provided support by boosting optimism for future oil demand growth. Manufacturing growth in the United States picked up to a three-month high in May, while China's factory sector turned in its best performance this year in May.
The data failed to lift prices substantially in a market driven by geopolitical factors and falling crude inventories.
"Mostly stronger data in the United States and China failed to support energy markets, although with tighter inventories expected in the coming months, momentum remains positive," analysts at ANZ said in a note.
A recent rally in oil prices, which pushed Brent to a 2½-month peak just above $111 on Thursday, could gain momentum as Asian shares edged up to one-year highs on Friday on signs of improving growth in the world's biggest economies.
Brent crude was up 12 cent at $110.48 a barrel by 09:12. The contract settled 19c lower on Thursday, after earlier touching $111.04, the highest since March 4.
US crude gained 4c to $103.78 a barrel after settling 33c lower, but was still on course for its third weekly gain on the back of a steep drop in US oil inventories last week.
"Brent managed to break through its previous high of $110.60, so I think there is scope for further gains over the coming week," said Ken Hasegawa, commodity sales manager at Newedge Japan.
"But the contract faces solid resistance around $113 and should begin to come back down again," he said.
Positive US and Chinese manufacturing data released on Thursday provided support by boosting optimism for future oil demand growth. Manufacturing growth in the United States picked up to a three-month high in May, while China's factory sector turned in its best performance this year in May.
The data failed to lift prices substantially in a market driven by geopolitical factors and falling crude inventories.
"Mostly stronger data in the United States and China failed to support energy markets, although with tighter inventories expected in the coming months, momentum remains positive," analysts at ANZ said in a note.
