Year highs for U.S. stocks also helped oil power toward its best week of gains in nearly two months, even though investors were disappointed by results from top U.S. banks Goldman Sachs and Citigroup. .N
The release of U.S. September industrial production and capacity utilization data, and a report on consumer sentiment for October, will offer more insight into the strength of the world's largest economy and top oil user.
U.S. crude for November delivery rose 48 cents to $78.06 a barrel by 0215 GM (10:15 p.m. EDT on Thursday)T, after settling $2.40 higher at $77.58 on Thursday. London Brent crude was up 40 cents at $76.63.
Oil is headed for a gain of 8.75 percent this week, and is its longest winning streak since July, but there are some worries about how long the rally can be sustained.
"A correction is on the cards. I would expect profit taking to set in next week, and oil to retreat to the mid- to low-$70s," said Ben Westmore, commodities analyst with the National Australia Bank.
"Fundamentals remain weak. Global inventories are still pretty high, and unless we see the supply overhang being worked off, an oil price in the high-$70s is really not justified."
Oil's 3.2 percent gain on Thursday came after U.S. Energy Information Administration data showed gasoline inventories fell by 5.2 million barrels last week, against analyst expectations for an increase. Distillate stockpiles also fell unexpectedly, while crude stocks rose 400,000 barrels, smaller than the forecast of a 700,000-barrel build.
Reuters
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