-- Brent futures heading for biggest weekly percentage drop since May 2011 -- Brent could fall to $82-a-barrel level if it closes Friday below $90, analyst says -- If Saudi Arabia comments on prices, it could support futures, analyst says By Konstantin Rozhnov LONDON--Crude-oil futures were higher Friday, correcting after sharp falls in the previous session, but global benchmark Brent is still heading for the biggest weekly percentage drop since early May 2011. So far this week Brent prices have fallen by around 8% and Nymex crude by more than 6%, on worries that economic problems could cut demand for fuel around the world at a time when crude markets are oversupplied. "It has been risk-off all around," said Thina Saltvedt, a senior oil market analyst at Nordea Bank Norge. At 1017 GMT, the front-month August Brent contract on London's ICE futures exchange was 91 cents, or 1%, higher at $90.14 per barrel. It earlier fell by 0.8% to $88.49 per barrel, the lowest level since Dec 2, 2010. The front-month August contract on the New York Mercantile Exchange was trading up 46 cents, or 0.6% at $78.66 per barrel, after touching an intra-day low of $77.56 per barrel. Nymex crude is trading at levels unseen since October. Both Brent and Nymex August contracts produced what technical analysts call "a death cross"--when the 50-day moving average crosses below a falling 200-day moving average--during a period of lateral consolidation in mid-June, said Francis Bray, Dow Jones chief technical analyst for Europe. "So the powerful downside move this week is all the more poignant, as it confirms the bearish signal," he said. If Brent closes Friday below $90 a barrel it could signal losses to $82 a barrel as there is very little support on the way, said VTB Capital analyst Andrey Kryuchenkov. Brent futures trading volumes were higher Wednesday and Thursday than in several previous weeks, indicating that market participants have started increasingly betting on lower oil prices, Mr. Kryuchenkov said in a note. "The upside is now limited at $96, but it is unlikely we shall see a sustained rebound in the near future," Mr. Kryuchenkov said. Oil prices should start rising at some point, but it is difficult to predict when exactly as it largely depends on the situation in the euro zone and developments in talks over Iran's nuclear program, Ms. Saltvedt added. Also Saudi Arabia, the world' largest oil exporter, hasn't commented on the sharp falls in oil prices this week, said Bjarne Schieldrop, chief commodities analyst at SEB Commodity Research. The kingdom has previously said that it saw the $100-a-barrel price level for Brent crude as preferable. "We would need to see some verbal intervention from Saudi Arabia before we see prices rising," Mr. Schieldrop said. If Saudi indicates that oil production will be cut, it could support oil futures, Ms. Saltvedt said. At 1017 GMT the ICE's gasoil contract for July delivery was down $10.00, or 1.2%, at $812.00 per metric ton, while Nymex gasoline for July delivery was 113 points, or 0.4%, higher at $2.5614 per gallon. -Write to Konstantin Rozhnov at konstantin.rozhnov@dowjones.com

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