Oil erased earlier losses and rose as high as $77.64 before retracing by 40-cents.
It's been a bounce-back week for oil as it trades at the best levels since late November. This week's US oil inventory report showed a counter-seasonal draw, though that was largely due to cold weather.
A report today said OPEC wouldn't change production levels at next week's monitoring meeting ,which isn't a big surprise. However OPEC may see tightening global balances at the moment and feel a bit better about the picture. Moreover, signs of stimulus from China and strong US growth are tailwinds to consumption, particularly in aviation.
Key for oil is a close above $76.18 today. Assuming that, eyes will be on whether oil can get back above $80, where oil topped out in mid-to-late November. Estimates for weekly oil inventories next week should start trickling in over the next few hours and that could jar oil into the close.
Beyond that, we will be watching for whatever happens in the Red Sea and Iran on the weekend.
