Oil rallies as bullish signals promise second weekly gain

By Libby George LONDON (Reuters) - Crude oil traded $2 higher before paring gains on Friday, on track for a second weekly increase, as chaos in Libya and stronger economic signals from the United States helped futures rebound from near-six-year lows. "Libya is really positive for oil prices," said Olivier Jakob of Petromatrix. Fighting across Libya, where two governments and parliaments allied to rival armed groups are vying for control, fueled concerns about the country's oil exp