Oil set for weekly gain on tighter supply before Powell speech

Oil was on track for a weekly gain amid a tightening supply outlook, with investor attention turning to a key speech on the US economy later Friday by Federal Reserve Chair Jerome Powell.

West Texas Intermediate futures edged above US$93 a barrel after closing 2.5 per cent lower in the previous session as traders digested hawkish headlines from Fed officials. Powell is expected to reiterate the resolve of the central bank to keep raising interest rates to rein in rampant inflation.

Crude rallied earlier this week after Saudi Arabia flagged potential cuts to OPEC+ output to stabilize a volatile market, a move supported by other cartel members including Iraq and Kuwait.