The Carlyle Group's Philadelphia Energy Solutions oil refinery in Philadelphia, US. Picture: REUTERS/DAVID M PARROT
The Carlyle Group's Philadelphia Energy Solutions oil refinery in Philadelphia, US. Picture: REUTERS/DAVID M PARROT

Tokyo — Crude prices jumped 1% on Friday, rebounding after two days of heavy declines with support from robust Chinese crude imports, but oil was still headed for its first weekly decline in five weeks.

Brent crude futures rose 89c, or 1.1%, to $81.15 a barrel by 4.55am GMT. The contract fell 3.4% on Thursday following sharp falls in equity markets and indications that supply concerns have been overblown.

Brent is still heading for a 3.6% decline this week, the biggest drop in about four months.

US West Texas Intermediate (WTI) crude futures were up 75c, or 1.1%, at $71.72 a barrel, after a 3% fall in the previous session. WTI is on track for a 3.5% decline this week.

Asian shares found a slightly firmer footing on Friday to set course for their first gains in two weeks, but the rout continued in Shanghai after Wall Street extended its slide into a sixth session.

Japan's Nikkei was down 0.3% on Friday.

On the oil front, China’s daily crude oil imports in September hit their highest level since May, customs data showed on Friday.

Elsewhere, US crude inventories rose by 6-million barrels last week, the Energy Information Administration said, more than double analysts’ expectations of a 2.6-million-barrel increase.

Opec cut its forecast of global demand growth for oil next year for a third straight month, citing headwinds facing the broader economy from trade disputes and volatile emerging markets.

Opec sees the oil market as well supplied and is wary of creating a glut next year, the group’s secretary-general said on Thursday.

“We still estimate oil demand growing at 1.2-million to 1.5-million barrels per day for this year, and see the risk of a slowdown in 2019 if trade tension escalates,” ANZ Research analysts said in a report.

In the US Gulf of Mexico, producers had cut output by 40% on Thursday due to Hurricane Michael, even as some operators began returning crews to offshore platforms.

Michael crashed ashore Florida on Wednesday as the third most powerful hurricane to strike the US mainland. It has since weakened to a tropical storm.

Reuters