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The
Brent and WTI benchmarks were both on course for gains of more
than 7% this week, their first weekly gain in seven, even after
a brief bout of profit-taking.
Brent crude futures were up 66 cents, or 0.9%, at $75.08 a
barrel by 1141 GMT after falling 1.9% on Thursday.
U.S. West Texas Intermediate (WTI) crude futures rose 74 cents,
or 1%, to $71.68 after sliding 2% in a volatile session the
previous day.
Earlier in the week the oil market had recovered about half the
losses suffered since the Omicron outbreak on Nov. 25, with
prices lifted by early studies suggesting that three doses of
Pfizer's COVID-19 vaccine offers protection against the Omicron
variant.
"The oil market has thus rightly priced out the 'worst-case
scenario' again, but it would be well advised to leave a certain
residual risk to oil demand in place," said Commerzbank analyst
Carsten Fritsch.
Keeping a lid on prices are faltering domestic air traffic in
China, owing to tighter travel restrictions, and weaker consumer
confidence after repeated small outbreaks.
Meanwhile, ratings agency Fitch downgraded property developers
China Evergrande Group and Kaisa Group, saying they had
defaulted on offshore bonds.
That reinforced fears of a potential slowdown in China's
property sector, as well as the broader economy of the world's
biggest oil importer.
A stronger dollar, rising ahead of U.S. inflation data due later
on Friday, also weighed on oil prices. Oil typically falls when
the dollar firms because it makes oil more expensive for buyers
holding other currencies.
(Additional reporting by Sonali Paul in Melbourne and Muyu Xu in
Beijing; Editing by David Goodman)
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