Oil headed for a third weekly gain as supply disruptions in Africa and a reduction in shipments from Russia tightened the market.

West Texas Intermediate futures traded near US$77 a barrel, up around four per cent this week, even as they fluctuated Friday. Libya's second-biggest oil field, Sharara, was shutting after protests stopped production at the El Feel field on Thursday.

Meanwhile, there's also a halt in Nigeria. That follows signs that resilient Russian flows are finally starting to decline, four months after the country was due to slash output.

Crude prices remain marginally lower this year, and the International Energy Agency said Thursday that global demand won't grow as fast as previously expected in 2023 — although the agency still sees record consumption. The market is expected to tighten in the second half, aided by supply cuts from Saudi Arabia and Russia.

The Organization of Petroleum Exporting Countries expects an even tighter global oil market next year, a view more bullish than other forecasters. World oil demand will climb by 2.2 million barrels a day to reach 104.3 million a day, OPEC said on Thursday in its first detailed assessment of 2024.

Prices:

• WTI for August delivery was little changed at US$76.80 a barrel as of 9:47 a.m. in London.
• Brent for September settlement was steady at US$81.28 a barrel.

Crude prices have “some room to run, with the oil balance looking increasingly tight for the remainder of the year,” said Warren Patterson, the Singapore-based head of commodities strategy at ING Groep NV. “However, from a technical point of view, the market is likely to face some strong resistance at the 200-day moving average.”

The U.S. benchmark has surpassed its 50- and 100-day moving averages in quick succession following recent gains, with prices near an 11-week high as physical market supply disruptions hit futures. WTI hasn't breached the 200-day threshold since August last year, although futures came close in April.