LONDON: Oil prices gained on Friday as the dollar slipped to a three-year low and global stocks headed for their biggest weekly gain in six years.

US West Texas Intermediate crude for March delivery was up 6 cents at $61.40 a barrel by 1110 GMT, after touching a one-week high of $61.89. Activity was subdued as many Asian markets were closed for the Lunar New Year holiday.

For the week, the US crude contract has risen about 4 per cent after losing nearly 10pc last week.

London Brent crude was up 15 cents at $64.48. Brent is up nearly 3pc for the week after falling more than 8pc last week.

“Oil is getting support from a rebound in global stock markets and a weak dollar, but the upside is limited due to a projection for rising US production,” said Tomomichi Akuta, senior economist at Mitsubishi UFJ Research and Consulting in Tokyo.

The dollar slipped to a three-year low against a basket of currencies on Friday but later regained some ground. A weaker dollar often boosts oil and other dollar-denominated commodities.

World shares were set to post their best week of gains in six years after two consecutive weeks in the red.

Also supporting oil prices was a statement from the United Arab Emirates energy minister late on Thursday saying oil producers led by Saudi Arabia and Russia aimed to draft an agreement on a long-term alliance by the year-end.

Published in Dawn, February 17th, 2018