UPDATE 7-Oil hovers below recent highs; ends week up

Reuters

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    * Brent still trading near three-year high
    * WTI up for ninth weekly gain
    * U.S. inventories low, gasoline demand high

 (Updates throughout and adds settlement prices)
    By Jessica Resnick-Ault
    NEW YORK, Oct 22 (Reuters) - Oil traded just below
multi-year highs on Friday with bullish sentiment about low
supplies tamped by concerns from world leaders that demand
disruptions from the COVID-19 pandemic may not be over.
    Brent crude  LCOc1  futures rose 92 cents, or 1.1%, to
settle at $85.53 a barrel. The benchmark, which touched a
three-year high of $86.10 on Thursday, was up 1% in the week,
its seventh weekly gain. 
    U.S. West Texas Intermediate (WTI) crude  CLc1  futures
gained $1.26, or 1.5%, to settle at $83.76 a barrel, not far off
a seven-year high hit this week. The contract gained 1.7% on the
week and was up for a ninth straight week.
    Prices have been boosted by worries about coal and gas
shortages in China, India and Europe, spurring some power
generators to switch from gas to fuel oil and diesel.
    Winter weather in much of the United States is expected to
be warmer than average, according to a National Oceanic and
Atmospheric Administration forecast.  urn:newsml:reuters.com:*:nL1N2RH1X1
    U.S. crude found support this week as investors eyed low
crude stocks at the U.S. storage hub in Cushing, Oklahoma. 
    U.S. Energy Information Administration data on Wednesday
showed crude stocks at Cushing fell to 31.2 million barrels,
their lowest level since October 2018.  urn:newsml:reuters.com:*:nL1N2RG1KJ
    "America's gasoline demand appears to be experiencing an
Indian summer," PVM analysts said in a note, pointing to the
highest implied demand for this time of year since 2007 despite
high pump prices.
    "Supply is still very, very tight, the market is just
cautious about the possibility of an uptick in COVID cases in
Russia, China and now Germany," said Phil Flynn, senior analyst
at Price Futures Group in Chicago. 
    Prices pulled back from earlier intraday highs after German
Chancellor Angela Merkel said the pandemic is not yet over.
 urn:newsml:reuters.com:*:nS8N2QM038
    Federal Reserve Chairman Jerome Powell said he could not
rule out another COVID-19 spike this winter.  urn:newsml:reuters.com:*:nW1N2QN003

 (Additional reporting by Sonali Paul in Melbourne and Koustav
Samanta in Singapore; Editing by Louise Heavens, Kirsten
Donovan, Angus MacSwan and Paul Simao)
 ((Shadia.Nasralla@thomsonreuters.com; +44 778 99 43141; Reuters
Messaging: Reuters Messaging:
shadia.nasralla.reuters.com@reuters.net))

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