Brent oil prices crept higher on Friday, as traders exited short positions ahead of a long holiday weekend in the United States, but the weekly percentage drop was still the biggest in more than a month. Both Brent and US crude ended the week 2 percent lower, as investors sold due to high supplies of US crude oil, fears of an economic slowdown in China, the world's No 2 oil consumer, and worries that the Federal Reserve will stop its bond buying programme.
It was the biggest weekly percentage loss since the week to April 19. Brent crude oil futures settled 20 cents higher at $102.64 per barrel, after trading between $101.65 and $102.79. US crude oil futures settled down 10 cents at $94.15 per barrel, but above the 100-day moving average, after trading as low as $93.04. Prices were supported late afternoon by a report of a gasoline unit shutdown at a refinery, and as traders bought contracts to cover short positions ahead of the Memorial Day holiday on Monday.
Genscape said it detected the shutdown of the 70,000 barrel per day fluid catalytic cracker at Irving Oil's 300,000 bpd refinery in St. John's, Canada. Gasoline futures rose on the news, settling at $2.839 a gallon, after trading as low as $2.80. "Initially, we thought it (the rise in prices) was just a shake-up north of border," said one New York-based broker. "But now, we're seeing short covering in front of the weekend."
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