Oil prices were firmer on Friday due to geopolitical tensions in the Middle East but, following losses in recent sessions, prices were set for their first weekly fall in six weeks as forecasts of oversupply and doubts about Russia's commitment to output curbs weighed.
Benchmark Brent crude was up 0.62% to $61.74 a barrel on Friday, but at that price was looking at a loss of 2.88% over the five trading sessions this week. Nymex West Texas Intermediate (WTI) was up 1.25% on Friday at $55.83 but facing a 1.63% weekly loss.
Middle East tensions
Prices were rallying again on Friday as tensions in the Middle East - between the world's largest producer Saudi Arabia and fellow OPEC member Iran - mounted over the influence of Hizbollah in the region.
Fears of instability in the major oil producing countries in the Middle East would keep crude prices underpinned, despite signs of increasing supply of oil to the world's major consumers.
Year highs for crude prices
During the previous week, both benchmarks reached highs for the year in a rally that has extended since June's lows - $45.83 a barrel for Brent and $43.08 for WTI. Brent's intraday year high on 6 November was $64.65 a barrel, while WTI hit $58.44 on the same date.
Oil prices have come off their highs in recent sessions, however, plagued by concerns of oversupply as US shale producers ramp up their output as production costs fall.
Earlier this week a report from the International Energy Agency, the global oil research group, suggested new advances in shale oil production technology would boost growth in US crude output.
The IEA said that it expected the US to become the "undisputed global oil and leader for decades to come".