Oil heads for fourth weekly gain on signs of market tightening

​Oil headed for a fourth weekly gain amid tentative signs that global markets are tightening.

Brent futures advanced 0.6 per cent in thin trading volumes, holding above US$80 a barrel in London. Russia has shown signs of paring crude exports as it belatedly honors a pact with Saudi Arabia and the OPEC+ alliance to help balanace world markets. Prices were also bolstered as China, the world's biggest crude importer, stepped up efforts to boost its flagging economic recovery.

Volumes often taper off during the summer holiday period and traders have been reducing their exposure in crude markets, sharply curbing open interest in West Texas Intermediate. The U.S. benchmark is also on track for fourth straight weekly increase.