Investing.com - Oil futures settled nearly flat on Friday, but still registered the first weekly gain in a month on the likelihood that key crude producers will extend output cuts beyond an agreed-on June deadline when they meet later this month.
The U.S. West Texas Intermediate crude June contract ticked up 1 cent to end at $47.84 a barrel by close of trade Friday. It touched the highest since May 3 at $48.22 on Thursday.
The U.S. benchmark rose $1.62, or around 3.4%, on the week, after posting three consecutive weekly declines.
Elsewhere, on the ICE Futures Exchange in London, Brent oil for July delivery tacked on 7 cents to settle at $50.84 a barrel by close of trade. The global benchmark hit $51.16 a day earlier, a level not seen since May 2.
For the week, London-traded Brent futures recorded a gain of $1.74, or nearly 3.5%.
OPEC and non-member oil producers are considering extending a global supply cut past the end of the year to give the market more time to rebalance, according to OPEC and industry sources.
Some officials in recent days have also suggested the possibility of deeper production cuts to help clear a supply glut.
In November last year, OPEC and other producers, including Russia agreed to cut output by about 1.8 million barrels per day between January and June, but so far the move has had little impact on inventory levels.
A final decision on whether or not to extend the deal beyond June will be taken by the oil cartel on May 25.
Oil futures posted their largest one-day gain since December 1 on Wednesday, rallying more than 3% after the U.S. Energy Information Administration said domestic oil stockpiles fell 5.2 million barrels in the week ended May 5, far exceeding market expectations. The reading marks the biggest weekly drawdown since December.
Crude sank to a five-month low at the start of the week, rattled by concern over increasing U.S. crude output that has shaken investors' faith in the ability of OPEC to rebalance the market.
Data from energy services company Baker Hughes showed on Friday that U.S. drillers last week added rigs for the 17th week in a row, implying that further gains in domestic production are ahead.
The U.S. rig count rose by 9 to 712, extending an 11-month drilling recovery to the highest level since August 2015.
Elsewhere on Nymex, gasoline futures for June gained 1.3 cents, or about 0.9% to end at a more than two-week high of $1.576 on Friday. It closed up around 4.8% for the week amid easing concern over lackluster demand.
June heating oil added 0.3 cents to finish at $1.493 a gallon. For the week, the fuel tacked on roughly 4%.
Natural gas futures for June delivery rose 4.8 cents to the strongest level since January 26 at $3.424 per million British thermal units, up 1.4% for the session and about 4.9% higher for the week.
In the week ahead, market participants will eye fresh weekly information on U.S. stockpiles of crude and refined products on Tuesday and Wednesday to gauge the strength of demand in the world’s largest oil consumer.
Meanwhile, investors will keep an eye out for a monthly report from the International Energy Agency for further evidence that global producers are complying with an agreement to reduce output this year.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, May 16
The International Energy agency will publish its monthly assessment of oil markets.
Later in the session, the American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, May 17
The U.S. Energy Information Administration is to release weekly data on oil and gasoline stockpiles.
Thursday, May 18
The U.S. government is to produce a weekly report on natural gas supplies in storage.
Friday, May 19
Baker Hughes will release weekly data on the U.S. oil rig count.