Investing.com - Oil futures ended Friday’s session higher, as better-than-expected economic data from the U.S. and China bolstered the outlook for future energy demand.
Crude prices received a further boost in post-settlement trade after news broke of an apparent military coup in Turkey. But the coup attempt crumbled as Erdogan rushed back to Istanbul from a Mediterranean holiday and urged people to take to the streets in support of his government against plotters he accused of trying to kill him.
Earlier, oil prices hit session highs after data showed that U.S. retail sales rose more than expected in June, as Americans bought motor vehicles and a variety of other goods, bolstering views that economic growth picked up in the second quarter.
Those expectations were further reinforced by other data on Friday showing that industrial production recorded its biggest increase in 11 months in June, driven by a surge in motor vehicle assembly. With domestic demand strengthening, inflation is also steadily rising.
The New York Fed raised its third-quarter GDP growth estimate to a 2.6% rate from the 2.3% it projected a week ago. The economy grew at a 1.1% pace in the January-March quarter.
Meanwhile, China's economy grew 6.7% in the second quarter from a year-ago, unchanged from the first quarter, data showed on Friday. Analysts had expected it to dip to 6.6%.
Also in China, fixed asset investment rose 9.0%, less than the 9.4% year-on-year gain seen in June, while industrial production gained 6.2%, better than 5.9% seen in the same period and retail sales rose 10.6%, a tad better than 10.0% seen.
The U.S. and China are the world’s two largest oil consuming nations.
On the ICE Futures Exchange in London, Brent oil for September delivery tacked on 24 cents, or 0.51%, to settle at $47.61 a barrel by close of trade. For the week, London-traded Brent futures rose $1.12, or 1.82%.
Elsewhere, on the New York Mercantile Exchange, crude oil for delivery in August advanced 27 cents, or 0.59%, to end at $45.95 a barrel. On the week, New York-traded oil futures inched up 88 cents, or 1.19%.
Gains were limited amid signs of an ongoing recovery in U.S. drilling activity. Oilfield services provider Baker Hughes said late Friday that the number of rigs drilling for oil in the U.S. increased by six last week to 357, the third straight weekly gain and the sixth increase in seven weeks.
The renewed gain in U.S. drilling activity fueled speculation that domestic production could be on the verge of rebounding in the weeks ahead, underlining worries over a supply glut.
According to the U.S. Energy Information Administration, crude oil inventories declined by a less-than-expected 2.5 million barrels last week to 521.8 million, which the EIA considered to be “historically high levels for this time of year”.
In the week ahead, oil traders will be focusing on U.S. stockpile data on Tuesday and Wednesday for fresh supply-and-demand signals.
Market players will also continue to monitor supply disruptions across the world for further indications on the rebalancing of the market.
Ahead of the coming week, Investing.com has compiled a list of these and other significant events likely to affect the markets.
Tuesday, July 19
The American Petroleum Institute, an industry group, is to publish its weekly report on U.S. oil supplies.
Wednesday, July 20
The U.S. Energy Information Administration is to release its weekly report on oil and gasoline stockpiles.
Friday, July 22
Baker Hughes will release weekly data on the U.S. oil rig count.