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By Sudarshan Varadhan
SINGAPORE, March 3 (Reuters) - Oil prices slipped in
early trade on Friday but were on track to post gains of nearly
2% for the week as a rebound in China's factory activity offset
growing concerns about rising U.S. crude stocks and potential
rate hikes in Europe.
Brent crude futures fell 39 cents, or 0.5%, to
$84.36 a barrel at 0147 GMT. U.S. West Texas Intermediate (WTI)
crude futures were down 41 cents, or 0.5%, at $77.75 a
barrel%.
Despite opening lower on Friday, Brent has climbed about
1.6% so far this week, on course for a second consecutive week
of gains, while WTI has jumped about 2%, rebounding from a small
loss the previous week on hopes of strong growth in fuel demand
in China, the world's top oil importer.
Manufacturing activity in China grew last month at the
fastest pace in more than a decade, reinforcing expectations of
a fuel decmand recovery. Seaborne imports of Russian oil are set
to hit a record high this month.
Comments by Atlanta Federal Reserve President Raphael Bostic
that the Fed should stick with "steady" quarter-point rate eased
concerns in the U.S., and helped support oil prices on Thursday
even after strong unemployment data.
However, the market remains wary of a faster than expected
rise in consumer prices in France, Spain and Germany, which
boosted expectations of further interest rate increases by the
European Central Bank (ECB).
Euro zone inflation rose to a higher than expected annual
rate of 8.5% in February, according to a first estimate from the
EU's statistics agency.
A 10th consecutive week of crude stock builds in the United States also weighed on the market this week.
(Reporting by Sudarshan Varadhan; Editing by Sonali Paul)
Twitter: @sudvaradhan;))
