SINGAPORE (Reuters) -Oil prices were set to snap a two-week losing streak on Friday amid optimism about higher energy demand from top crude importer China and a weaker dollar.<\/p>\n\n\n\n
Brent\u00a0futures rose 20 cents, or 0.3%, to $75.87 a barrel by 0632 GMT, while U.S. West Texas Intermediate (WTI) crude was 16 cents, or 0.2% higher, at $70.78 a barrel. Both benchmarks surged about 3% during the prior session.<\/p>\n\n\n\n
Data on Thursday showed China’s oil refinery throughput rose 15.4% in May from a year earlier, hitting its second-highest total on record. Chinese demand for oil is expected to keep climbing at an assured rate during the second half of the year, Kuwait Petroleum Corp’s CEO said.<\/p>\n\n\n\n
In the United States, data released on Thursday showed retail sales unexpectedly rose in May, along with higher-than-expected jobless claims last week. The dollar fell to a five-week low versus a basket of other currencies.<\/p>\n\n\n\n
A weaker dollar makes oil cheaper for holders of other currencies, which could boost demand.<\/p>\n\n\n\n
Analysts also expect voluntary crude output cuts implemented in May by the Organization of the Petroleum Exporting Countries and its allies, and by Saudi Arabia in July, to support prices.<\/p>\n\n\n\n
Still, a weak economic outlook looms over market sentiment, as China’s industrial output and retail sales growth in May missed forecasts.<\/p>\n\n\n\n
“Crude prices are trying to find support as the global growth outlook remains vulnerable to further shocks from aggressive rate hiking campaigns,” Edward Moya, an analyst at OANDA said in a note.<\/p>\n\n\n\n
The European Central Bank raised interest rates to a 22-year high as expected on Thursday. The U.S. Federal Reserve this week signalled at least a half of a percentage point increase by year end.<\/p>\n\n\n\n
Higher interest rates ultimately increase borrowing costs for consumers, which could slow economic growth and reduce oil demand.<\/p>\n