Oil Heads for Fifth Weekly Gain on Saudi Production Cut, Economy

Oil traded near the highest level in almost four months, extending the longest weekly rising streak since August, as Saudi Arabia cut production and investors speculated a global economic recovery will boost fuel demand.

Futures were little changed in New York after rising for the first time in three days yesterday. Saudi Arabia, the world’s largest crude exporter, reduced output in December to the lowest in 19 months, according to a Persian Gulf official with knowledge of the kingdom’s energy policy. Oil is poised for a fifth weekly gain after Chinese exports accelerated, European Central Bank President Mario Draghi said the euro-area economy will gradually recover, and Japan announced a 10.3 trillion yen ($116 billion) stimulus package.