By Barani Krishnan
NEW YORK (Reuters) - Oil prices rose about 1 percent on Friday, on track for second consecutive weekly gain, after data from top energy consumers the United States and China boosted the oil demand outlook.
U.S. retail sales rose more than expected in June as Americans bought motor vehicles and a variety of other goods, data showed, reinforcing views of steady economic growth in the second quarter. Consumer prices also surged for a fourth straight month.
China's economic growth, came in at 6.7 percent in the second quarter versus a year ago.
Brent crude futures were up 40 cents, or 0.8 percent, at $47.77 by 10:26 a.m. EDT(1426 GMT). It slipped as much as 1.5 percent earlier to a session low of $46.65.
U.S. West Texas Intermediate (WTI) futures rose 35 cents, or 0.7 percent, to $46.03. The intraday low was $45.05.
Concerns about a global glut in crude and refined products had weighed on oil earlier in the session.
Brent was on track for a weekly gain of over 2 percent and WTI an over 1-percent rise after a volatile week. The market saw daily moves of up to 5 percent earlier this week as the market corrected from last week's near 8-percent slump and reacted to bearish U.S. oil inventory data.
Crude futures have risen 75 percent from 12-year lows of $27 for Brent and $26 for WTI in the first quarter. But the market has been unable to make a solid advance above $50 since May, on worries demand will remain short of output and supply.
"Inventories are high and we are in the withdrawal season. Things could get worse when we enter late August and September when inventories usually build," said Hamza Khan, head of commodities strategy at Netherlands-based ING Bank, which expects Brent to average $40 in the third and fourth quarters.
BNP Paribas analysts say they expect "very little implied global stock change will occur from Q3 2016 until the end of 2017" in oil.
Some analysts are more optimistic.
Bank of America Merrill Lynch's energy research team maintained its outlook for 2017 oil demand, saying it will grow by 1.2 million barrels per day to bring supply into a deficit. Brent will hit $55 a barrel by end-2016, it forecast.
(Additional reporting by Ron Bousso in LONDON and Aaron Sheldrick in TOKYO; Editing by Elaine Hardcastle and Marguerita Choy)
