Brent crude gained 27 cents to $118.27 a barrel today but is heading for its steepest weekly loss since mid-January as Spain’s high borrowing costs raised fears about renewed euro zone debt crisis.

Spain sold €2.5bn for two-year and ten-year bonds, but yields on 10-year bonds were higher, reflecting fears the country may miss its budget deficit target, reports Reuters.

Meanwhile, US crude rose 48 cents to $102.75 a barrel, but weak economic data capped further gains.