AnalysisOil is little changed on Friday trading, girding for a weekly advance, traded near five-week high.   

Crude oil for July delivery is currently trading at $101.55 after recording a high of $102.12 and a low of $101.50, where $100 level remains a strong support for the black gold. Oil has been moving within narrow range, hovering around $100 level, over the past five weeks after it dropped from a high of $114.80 to a low of $94.62 in the week ended May 6.

Oil prices were boosted this week by the failure of OPEC to reach a unanimous agreement over increasing production and improvement in US trade data.

OPEC members were split as Saudi Arabia, Kuwait, Qatar and the United Arab Emirates were ready to increase production by 1.5 million barrels a day while Iran and Venezuela led the opposition as they refused any production hike, noting that the oil-cartel group will gather again within three months to decided quotas.

However, Saudi Arabia may act solely thought increasing production to 10 million barrels a day from the current 8.7 million barrels. Analyst at Societe Generale said Saudi Arabia may raise production regardless of OPEC decision.

The group’s secretary general mentioned that production quotas system was negatively affected by the lost production from Libya.

Yesterday, oil was enhanced by the advance in global stocks which increased on the back of the improvement in US trade figures. Trade deficit narrowed to $43.7 billion in April from the revised $46.8 billion deficit.

Investors were waiting for an update from the US economy after a wave of downbeat data released over the past few weeks and dovish comments from the Fed's Chairman this week.

The optimistic trade figures gave support to the dollar as it rose for the third day on Friday reaching a high of 74.36 compared with the day's opening level of 74.18.    

On the supply side, the EIA upwardly revised its oil demand projections for 2011 by 1.7 million barrels a day on expected rise in demand from Japan, China and Middle East. 

The EIA report released on Wednesday showed that U.S. commercial crude oil inventories decreased by 4.8 million barrels from the previous week. Total motor gasoline inventories increased by 2.2 million barrels, both finished gasoline inventories and blending components inventories increased and distillate fuel inventories increased by 0.8 million barrels.