Oil prices are set for their longest weekly winning streak since July, buoyed by signs of market tightening.
By 3:15 pm AEDT (4:15 am GMT) Brent crude futures were up by $0.17 or 0.2% to US$77.09 per barrel, while West Texas Intermediate (WTI) hovered added $0.14 or 0.2% to $74.06 per barrel.
One key factor driving the rally is the significant drop in crude inventories at the Cushing, Oklahoma, storage hub, which have fallen to their lowest levels since 2014.
Additionally, colder weather has spurred demand for heating fuels, while reduced shipments from Russia have added to supply concerns.
Despite the recent gains, concerns over demand weakness in China persist. Consumer inflation in the world's top oil importer continues to edge closer to zero, reflecting ongoing economic challenges.
Geopolitical risks have also come into focus as United States President-elect Donald Trump prepares to take office. His expected policies, including authorising new drilling on federal lands and imposing tariffs on Canadian imports, have created uncertainty about potential disruptions in global energy flows, including Iranian crude supplies.
