Oil dipped on Friday but were poised for touching the best weekly gain not seen since October as optimism about fuel demand was buoyed by hints of Chinese stimulus and solid U.S. economic development.

Brent crude slumped 0.57% to $81.96 per barrel, meanwhile US WTI dropped 0.79% to $76.75 per barrel.

The Brent benchmark was anticipated to wrap up the week with 4.5% higher for the week, while the U.S. benchmark was poised to edge 4.8%.

The two benchmarks were on course for hitting weekly gains for the second consecutive week and the largest rise since last October following the kick off the Middle East conflict.

As of Thursday, Houthis declared that they would not stop attacking Israeli ships until aids reach the Palestinians in Gaza.

Data released on Thursday revealed that the U.S. economy, the largest consumer of oil globally, grew faster than anticipated in Q4, boosting demand sentiment.

In an effort to promote economic expansion, China, the second-biggest oil consumer in the world, has declared a significant reduction in bank reserves.