Oil’s bull run rolls on despite possible China reserves release

Oil’s bull run rolls on despite possible China reserves release

Oil futures settled higher on Friday, boosted by supply constraints and worries of a Russian attack on neighbouring Ukraine, pushing prices toward their fourth weekly gain despite sources saying China is set to release crude reserves around the Lunar New Year. urn:newsml:reuters.com:*:nL1N2TU0EJ Brent crude futures settled $1.59, or 1.9%, higher at a 2-1/2-month high of $86.06 a barrel, gaining 5.4% in the week. U.S. West Texas Intermediate crude gained $1.70 , or 2.1%, to $83.82 per barrel, rising 6.3% in the week. Both Brent and U.S. futures entered overbought territory for the first time since late October. "People looking at the big picture realize that global supply versus demand situation is very tight and that's giving the market a solid boost," said Phil Flynn, senior analyst at Price Futures Group. Flynn added that traders did not want to be short in the market as tensions mounted between Russia and Ukraine and ahead of a long U.S. weekend for the Martin Luther King Jr Day holiday, which typically sees lower trading volumes. U.S. officials voiced fears on Friday that Russia was preparing to attack Ukraine if diplomacy failed. Russia, which has massed 100,000 troops on Ukraine's border, released pictures of its