Brent crude oil moved closer to posting gains for the second week in a row on Friday morning as it traded above $113. The commodity was buoyed by positive data from the world's largest economies, which suggested the global economy was on the road to recovery. Brent traded at $113.31 on Friday morning.
The US and China both posted positive data within their manufacturing sectors, a healthy sign of economic growth. Manufacturing growth in both nations grew rapidly, and according to CNBC, at its fastest pace in nearly two years.
The US' decision to extend the debt ceiling deadline until mid-May has also calmed the markets after the nation narrowly avoided falling over the ‘fiscal cliff'. Although a compromise has not yet been made, the extra time will give lawmakers a bit of breathing room to come up with a plan to tackle the nation's debt burden.
Confidence in the eurozone recovery has slowly returned to the market as the region moved into 2013 claiming the worst was over. Data this month from Germany suggested that Europe's largest economy was picking up, and supported hopes that 2013 would be a year of recovery for the entire region.
Brent also found support after the Seaway oil pipeline cut its oil flow rate on Wednesday. The pipeline normally delivers 400,000 barrels per day, but reduced its volume to just 175,000 bpd. A timeline for restoration hasn't yet been released, but many expect that the pipeline will resume at full capacity soon, possibly within the next week.
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