Oil was slightly higher near $73 a barrel on Friday, underpinned by signs of a gradual economic recovery in the United States and the prospect of increased winter demand as a cold snap gripped the US Northeast. A slight fall in the US dollar from a more than three-month high the previous day added to price support, after a slew of economic data on Thursday that seemed to show the United States on track for a recovery, albeit a patchy one.
Crude for January delivery rose 24 cents to $72.89 a barrel by 0700 GMT. London Brent crude was up 3 cents at $73.40. On the supply front, Suncor Energy Inc said Thursday. It would cut output at one of its oil sands upgraders in Canada's Alberta Province by up to 150,000 barrels a day, or half of its capacity, for two to four weeks after a fire at the plant on Tuesday.
The outage had a limited effect on world oil prices, but traders said it could mean some of the crude stocks accumulating in the US Midwest, and weighing on front-month futures, will be drawn down.
The January oil contract, which expires on Monday, is on track for a 4.2 percent gain this week, but the second month is up just 3.0 percent, as the backwardation between the two narrowed to just over $1 from more than $2 at the start of the week. There is no expectation of a change in output from the Organisation of the Petroleum Exporting Countries (Opec), which pumps about a third of the world's oil, when it meets in Angola on December 22.
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