FX.co ★ Oil Rises On Signs Of Tighter Supply

Oil prices rose slightly on Friday and were on track for a second consecutive weekly gain after data showed a big drop in U.S. crude inventories.

The upside, however, remained capped by concerns about the impact of higher interest rates on growth and energy demand.

Benchmark Brent crude futures edged up 0.3 percent to $76.72 a barrel, while WTI crude futures were up 0.3 percent at $72.05.

Data released by the Energy Information Administration (EIA) on Thursday showed crude inventories in the U.S. fell by 1.508 million barrels in the week ended June 30, suggesting resilient demand.

Gasoline stockpiles fell by 2.550 million barrels in the week, much more than an expected drop of 1.417 million barrels, while distillate stockpiles dropped by 1.045 million barrels, as against expectations for an increase of about 0.300 million barrels.

Data released Wednesday by the industry group American Petroleum Institute also showed a bigger-than-expected drop in U.S. crude oil inventories, helping offset fuel demand worries to some extent.

The dollar held steady in European trade ahead of the U.S. monthly jobs report due later in the day, which could offer additional clues on the economic and rate outlook.