Oil rose towards $58 a barrel on Friday, heading for a weekly gain, supported by an easing of concerns that the interim accord over Iran's nuclear work will lead to a rapid rise in Iranian oil supplies, Reuters reported.
Evidence this week of ample global supplies, including the biggest jump in US inventories since 2001, a glut of unsold Nigerian crude and Saudi Arabian output reaching a record high, limited the rally. Brent crude was up $1.16 at $57.73 a barrel, remaining on track for its third weekly gain in four weeks. US crude rose 50 cents to $51.29.
"The latest agreement with Iran does not open the floodgates for a significant return of Iranian oil on the market as many had feared," said Harry Tchilinguirian, head of commodity markets strategy and oil strategy at BNP Paribas.
Crude was also supported by expectations of stronger demand after data this week from the United States and Germany bolstered the view that world growth is slowly perking up.
After eight days of marathon talks on Tehran's nuclear program in Lausanne, Switzerland, Iran and the P5+1 (Britain, China, France, Russia, the US plus Germany) reached a framework agreement on April 2 that calls for lifting all trade sanctions against Iran. The details of the agreement are to be finalized by a June 30 deadline.
