Oil prices edged higher this evening at the end of a volatile week marked by the unprecedented closure of European airspace and data showing sagging demand in the US, the world's top energy consumer. US crude added 26 cents to $83.96 a barrel, while Brent gained 55 cents to $86.22.
Oil slumped at the start of the week, diving almost $2 on Monday amid continued concerns over fraud charges against Wall Street icon Goldman Sachs and the closure of European airports due to volcanic ash from an eruption in Iceland.
The market bounced back on Tuesday, rising dramatically on the prospect of transatlantic air travel resuming. Traders reacted to a pick-up in jet fuel demand as planes increasingly took to the skies after the travel chaos that was sparked by the volcanic ash cloud crisis.
Prices diverged on Wednesday and flattened on Thursday as traders reacted to rising US inventories that indicated weaker demand. US crude reserves increased 1.9 million barrels in the week ending April 16, against market expectations for a drop of 200,000 barrels.
Demand in the US is closely monitored because it is the world's biggest economy and its biggest energy consumer.
