fdlx.com
Oil prices jumped on Friday supported by fresh investment and a strong yuan, which makes fuel cheaper for Chinese importers, but analysts warned that any price rally was pre-mature as a global glut remained in place, Reuters reported.
U.S. crude futures CLc1 were trading at $38.66 a barrel at 0409 GMT, up 82 cents and over 2 percent from their last close, according to Reuters.
Brent crude futures LCOc1 were at $40.73 a barrel, up 68 cents.
Traders said that the price support came from the Chinese yuan hitting its highest level in 2016 on Friday at 6.4877 per dollar, reflecting a global weakening of the dollar against leading currencies. The greenback declined following easing measures announced by the European Central Bank on Thursday.
A weaker dollar is supportive for oil prices as it makes dollar-traded oil cheaper for countries using other currencies, potentially spurring fuel demand.
Traders said prices also received support from fund money flowing into oil markets, according to the report.
"The funds have turned bullish and the market seems determined to stay at or around $40," said Pete Donovan, broker at Liquidity Energy in New York.
Friday's stronger prices came following losses the previous day after a meeting between major producers to coordinate a freeze in output looked unlikely to even take place since Iran would not commit to attending.