Jan 26 Reuters Oil prices eased on Friday but were set for their biggest weekly gain since October as positive U.S. economic growth and signs of Chinese stimulus boosted fuel demand sentiment.

Brent crude futures were down 47 cents, or 0.57, to 81.96 a barrel by 0715 GMT. U.S. West Texas Intermediate crude fell 61 cents, or 0.79, to 76.75.

The Brent benchmark was set to close 4.5 higher for the week, while the U.S. benchmark was set to rise 4.8. Both were on track for their second straight week of gains and the biggest weekly increase since the week ending Oct. 13 after the start of the IsraelHamas conflict in Gaza.

Prices slipped somewhat on Friday on signs that oil supply disruptions in the Red Sea may ease as China is pressuring Iran to curb attacks on shipping in the waters off Yemen by the Iranaligned Houthi militia that the group started in retaliation to Israel39;s Gaza attacks.

Chinese officials have asked their Iranian counterparts to help rein in the attacks or risk harming business relations with Beijing, sources said.

However, the Houthis are vowing to continue targeting ships linked to Israel until aid reaches Palestinians in Gaza, the group39;s leader said on Thursday.

Previous interventions by U.S. and UK forces in the Red Sea had not prevented attacks, leading investors to price in continued disruption, said Yeap Jun Rong, a market strategist at IG in Singapore.

Those disruption concerns are evident in the market structure of Brent futures. The…