Oil heads for second weekly advance as China outlook brightens

Oil headed for a second weekly gain as optimism over stronger Chinese demand overshadowed a weaker outlook in other major economies.

West Texas Intermediate rose toward US$81 a barrel, putting the U.S. benchmark on course for a gain of about 1 per cent this week. Chinese consumption has been picking up after the top crude importer abandoned harsh virus restrictions, with signs of increased buying by refiners in the physical market.

Still, weakness elsewhere has limited the rally. European Central Bank President Christine Lagarde vowed policy would remain tight as inflation was still too high. In the U.S., Federal Reserve Vice Chair Lael Brainard, considered a dove, said Thursday that rates will need to stay elevated for a period.