OIL ROSE ABOUT 1% on Friday and was set for a weekly gain in low trading volume ahead of year-end, backed by expectations of lower US crude stockpiles and hopes of a stimulus-driven economic recovery in China. Brent crude futures rose 62 cents, or 0.9%, to $73.88 per barrel by 11:09 am EST (1611 GMT). US West Texas Intermediate crude futures rose 70 cents, or 1%, to $70.32 per barrel.On a weekly basis, both Brent and WTI crude are set to gain about 1.5%.US crude oil inventories fell by 3.2 million barrels in the week ended December 20, market sources said on Tuesday, citing figures from the American Petroleum Institute. That is a bigger decline than the 1.9-million-barrel drawdown forecast by analysts in a Reuters poll."Probably we are moving back up again in anticipation of a crude draw in the US," said UBS analyst Giovanni Staunovo."Some support for oil might come soon from cold weather supporting demand."Optimism over Chinese economic growth has also sparked hopes of higher demand next year from the top oil importing nation. - REUTERS

Oil rises 1%, heads for weekly gain

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