(Corrects milestone in paragraph 2 to 9 weeks instead of 11)
* Recovering stock markets boost oil prices
* U.S. crude on track for first weekly gain in 11 weeks
* Brent set for first weekly rise for two weeks
By Meeyoung Cho and Aaron Sheldrick
SEOUL, Aug 28 (Reuters) - Crude oil futures rose on Friday,
adding to their biggest one-day rally in over six years the day
before, led by recovering equity markets and news of diminished
crude supplies.
U.S. crude CLc1 is on track for its first weekly gain in 9
weeks, ending its longest losing streak since 1986. Brent crude
LCOc1 is set for its first weekly gain in two weeks.
Asian shares extended a global rally on Friday after upbeat
U.S. economic data calmed sentiment, with Chinese stocks jumping
for the second day following a rocky start to the week.
MKTS/GLOB
October Brent crude was up 69 cents at $48.25 per barrel as
of 0615 GMT. It settled $4.42 higher at $47.56 per barrel in the
previous session. U.S. crude was 65 cents higher at $43.21 per
barrel, after ending up $3.96 at $42.56 per barrel.
The corresponding crude options market, however, remained
muted on Thursday, suggesting most big traders were shrugging
off the move as merely a correction in the year-long bear
market. ID:nL1N1121TV
"A short covering rally, led by crude oil pushed commodities
higher across the board. Better than expected U.S. GDP numbers
was the main spark, although the force majeure on BP's exports
from Nigeria extended the gains," ANZ said on Friday.
"The recovery in commodity prices looks fragile with
concerns over China's growth still weighing on market activity."
The U.S. economy grew faster than initially thought in the
second quarter on solid domestic demand. Gross domestic product
expanded at a 3.7 percent annual pace instead of the 2.3 percent
rate reported last month, the Commerce Department said on
Thursday. ID:nL1N1120QD
Shell's Nigerian unit declared force majeure on Bonny Light
crude oil exports on Thursday after shutting down two key
pipelines in the country due to a leak and theft. ID:nL1N1121LL
BMI Research, part of the Fitch ratings agency, said: "the
renewed weakness in Brent is overdone from a fundamental
perspective and due to recover into the US$50.00-60.00/bbl range
within the coming months...With the next long-term line of
support around USD35.00/bbl, we explore the potential catalysts
for a move lower in Brent."
China's falling auto sales have been at the forefront of
concerns that its economy is slowing much faster than expected,
weighing on oil prices. ID:nL5N11204A
To come up with a plan to stop declining global oil prices,
Venezuela has been contacting other members of the Organization
of the Petroleum Exporting Countries (OPEC), pushing for an
emergency meeting with Russia, the Wall Street Journal reported.
ID:nL4N1125I3