Oil prices up 3% to 9-week high on supply concerns

Oil prices up 3% to 9-week high on supply concerns

NEW YORK - Oil prices climbed about 3% to a nine-week high on Friday as supply concerns and technical buying outweighed fears that further interest rate hikes could slow economic growth and reduce demand for oil. Brent futures rose $1.95, or 2.6%, to settle at $78.47 a barrel, while U.S. West Texas Intermediate crude (WTI) rose $2.06, or 2.9%, to settle at $73.86. That was the highest close for Brent since May 1 and WTI since May 24. Both benchmarks ended up about 5% for the week. "We're knocking on the door of a major breakout to the upside. I think you're seeing some short covering here today ... because a lot of people have been betting on the short side, said Phil Flynn, an analyst at Price Futures Group. After two months of price consolidation between roughly $73-77, Brent moved into technically overbought territory for the first time since mid April. "The rally over the last week or so ... has been quite strong and backed by momentum - as well as fresh cuts from Saudi Arabia and Russia," said Craig Erlam, a senior market analyst at OANDA. Top oil exporters Saudi Arabia and Russia announced fresh output cuts