* China's exports and services sector expand in April
* April crude imports down 0.2% year on year in China
(Updates prices, adds detail)
By Ahmad Ghaddar
LONDON, May 7 (Reuters) - Oil prices eased on Friday but
were set for a weekly gain against the backdrop of optimism over
a global economic recovery, though the COVID-19 crisis in India
weighed.
Brent crude futures LCOc1 were down 12 cents, or 0.2%, at
$67.97 a barrel by 1343 GMT and U.S. West Texas Intermediate
(WTI) crude CLc1 fell by 10 cents, or 0.2%, to $64.61.
Both Brent and WTI are on track for second consecutive
weekly gains as easing restrictions on movement in the United
States and Europe, recovering factory operations and coronavirus
vaccinations pave the way for a revival in fuel demand.
In China, data showed export growth accelerated unexpectedly
in April while a private survey pointed to strong expansion in
service sector activity. However, crude imports by the world's biggest buyer fell
0.2% in April from a year earlier to 40.36 million tonnes, or
9.82 million barrels per day (bpd), the lowest since December.
The recovery in oil demand, however, has been uneven as
surging COVID-19 cases in India reduce fuel consumption in the
world's third-largest oil importer and consumer.
"Brent came within a whisker of breaking past $70 a barrel
this week but failed at the final hurdle as demand uncertainty
dragged on prices," said Stephen Brennock at oil brokerage PVM.
The resurgence of COVID-19 in countries such as India, Japan
and Thailand is hindering gasoline demand recovery, energy
consultancy FGE said in a client note, though some of the lost
demand has been offset by countries such as China, where recent
Labour Day holiday travel surpassed 2019 levels.
"Gasoline demand in the U.S. and parts of Europe is faring
relatively well," FGE said.
"Further out, we could see demand pick up as lockdowns are
eased and pent-up demand is released during the summer driving
season."
In the United States, job growth unexpectedly slowed in
April, likely restrained by worker shortages that have left
businesses scrambling to meet booming demand as the economy
reopens.