Oil Gains On Optimism Over Demand Outlook, Supply Cuts

Oil prices rose on Friday, with both Brent and U.S. crude set to chalk up another weekly gain as investors bet that efforts to cut a global glut are working and that the demand outlook is improving. U.S. crude was up 2 cent at $51.58 a barrel at 0110 GMT. The contract is heading for a fourth consecutively weekly gain and is on track for a 9-percent advance this month. Brent rose 22 cents to $57.63 a barrel, heading for a fifth weekly climb and a 10-percent gain for September.

The price gains, most of them in the last two-and-a-half weeks, have come as traders anticipated renewed demand from U.S. refiners that were resuming operations after shutdowns due to Hurricane Harvey. Major world oil producers outside the United States have also indicated they will stick with output cuts to limit supply. They are getting support from Turkey's threats to cut off a pipeline from the Kurdish region of Iraq after a referendum where Kurds voted overwhelmingly in favour of independence.

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