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A woman pumps gas at a station in Falls Church, Virginia December 16, 2014. REUTERS/Kevin Lamarque

Oil heads for weekly gain despite ample supply

SINGAPORE – Oil prices were little changed on Friday but set to end the week slightly higher despite ample supply, buoyed by a weaker dollar, forecasts of lower U.S. crude output and a pick-up in global demand.

U.S. crude is on track to rise for a ninth week, which would be the benchmark’s longest winning streak since 1983. U.S. crude stockpiles have fallen from record levels, while international oil agencies cut U.S. production forecasts after low prices hurt shale producers.

June West Texas Intermediate futures were down 13 cents at $59.75 a barrel as of 0145 GMT. July Brent crude edged up 3 cents to $66.73 a barrel. Front-month Brent is on track for a weekly gain after a 1.6 percent decline last week interrupted its month-long rally.

But analysts said prices have outperformed weak oil fundamentals. Supply continues to exceed demand growth, which has been curbed by a lackluster global economy.

“Recent price action across a number of commodities suggests the rally in recent months has largely run its course,” ANZ analysts said in a note.

The bank noted that WTI has failed to rise above $62 a barrel twice in the past week despite a weaker U.S. dollar.

Oil prices also did not react much to rising tensions in the Gulf, after Iranian naval vessels fired shots at a Singapore-flagged tanker in the Gulf on Thursday.

In related news, NYMEX – U.S. crude oil prices dip on surprise North Dakota output jump.

(Reporting by Florence Tan; Editing by Richard Pullin)

This article was written by Florence Tan from Reuters and was legally licensed through the NewsCred publisher network.