U.S. crude rises $1, but posts 3rd straight weekly loss

Oil prices rose Friday as a weakening dollar and lower expected August oil exports from Saudi Arabia supported the market, overtaking concerns about U.S.-China trade tensions and supply increases.

Despite Friday’s gains, crude futures posted a third consecutive weekly decline as supply increases pulled prices lower during the course of the week, Reuters reported.

The expiring U.S. West Texas Intermediate crude contract for August delivery ended Friday's session up $1, or 1.4%, to $70.46 a barrel, while the more heavily traded September contract was trading 10 cents higher, at $68.34/Bbl just before the settle, Kallanish Energy learns.

Brent oil was 47 cents higher, at $73.05/Bbl by 2:27 p.m. ET Friday.

Crude futures got a boost as the U.S. dollar slumped on comments from President Trump that China and Europe are manipulating their currency and the Federal Reserve is hurting economic growth by raising interest rates.

A weaker greenback typically supports oil prices because it makes crude, which is sold in dollars, more affordable to holders of other currencies.

Prices are also finding some support after OPEC’s largest oil producer, Saudi Arabia, said it would ease its exports next month.

There was also bullish news from American oilfields, where U.S. energy companies last week cut oil rigs by the most since March. Drillers cut 5 oil rigs in the week ended July 20, bringing the total count down to 1,019, Baker Hughes, a GE company said in its rig survey released Friday.

However, trade tensions continued to weigh on the market, providing a ceiling for any gains, traders said. Trump said in a CNBC interview he was ready to put tariffs on all $500 billion of imported goods from China.

Lower oil demand in the U.S. and China caused by an economic slowdown from their trade dispute would likely weigh heavily on markets.

“The impact on world economic growth of a levy of this magnitude will be severe and will likely have a strong negative impact on markets,” said Olaf van den Heuvel, chief investment officer at Aegon Asset Management, Reuters reported.

Signs of Russia and Saudi Arabia increasing oil production, as well as last week’s surprise build in U.S. crude stockpiles, have also weighed on prices, said Tariq Zahir, analyst at Tyche Capital Advisors, Reuters reported.

“You’re having supply come back on to the markets, so it’s not surprising to see a little bit of weakness,” Zahir said.

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