Oil prices head for 2% weekly gain as Fed hopes boost market, Venezuela tensions loom

WTI oil prices were heading for weekly gains of close to 2% in early trading on Friday, supported by an expected Federal Reserve interest rate cut, escalating U.S.-Venezuela tensions and stalled peace talks in Moscow. It would be a second straight week of increases. Prices were little changed at market open on Friday, with Brent crude up 6 cents, or 0.09%, at $63.32 per barrel by 0104 GMT. U.S. West Texas Intermediate was up 4 cents, or 0.07%, at $59.71 a barrel. Both contracts settled up around 1% in the previous trading session. Of economists surveyed in a November 28-December 4 Reuters poll, 82% expected a 25-basis-point interest rate reduction at next week’s Federal Reserve policy meeting. A rate cut would stimulate economic growth and demand for oil.