Oil jumps on pre-holiday buying, Brent up 4 pct on week – Reuters

gas opportunities

* Market rebounds on bullish second-half positioning

* Weekly rise in U.S. oil rig count ignored

* Brent up 4 pct on week, largest rise in 7 weeks

* Barclays cuts 2016 Brent, WTI forecasts by $3/bl (New throughout, updates market activity, prices and milestones to settlement)

By Barani Krishnan

NEW YORK, July 1 (Reuters) – Oil prices surged on Friday, and Brent crude posted its largest weekly gain since mid May, as investors positioned for the start of third quarter trading while a weaker dollar boosted prices of most commodities.

The market shook off a closely-followed industry report that showed a fourth weekly rise in the last five in the number of U.S. oil rigs operating. According to oil services firm Baker Hughes, producers added 11 oil rigs this week, the biggest increase since December, signalling a near-two year rout in drilling may have ended.

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