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Brent crude rose 39 cents, or 0.4%, to $94.51 a barrel by 0900
GMT. U.S. West Texas Intermediate crude was up 27 cents, or
0.3%, at $88.81.
Prices have come under pressure this week as the market has
fretted over the impact of inflation on economic growth and
demand, but signs of tight supply kept a floor under prices.
The OPEC+ producer group agreed this week to raise its oil
output goal by 100,000 barrels per day (bpd) in September, but
this was one of the smallest increases since such quotas were
introduced in 1982, OPEC data shows.
"OPEC's meagre supply hike highlights the limited capacity the
market has to handle further shortages," ANZ Research analysts
said.
The global crude oil markets remained firmly in backwardation,
where prompt prices are higher than those in future months,
indicating relatively tight supplies.
Supply concerns are expected to ratchet up closer to winter,
with European Union sanctions banning seaborne imports of
Russian crude and oil products set to take effect on Dec. 5.
"With the EU halting seaborne Russian imports, there is a key
question of whether Middle Eastern producers will reroute their
barrels to Europe to backfill the void," said RBC analyst
Michael Tran.
"How this Russian oil sanctions policy shakes out will be one of
the most consequential matters to watch for the remainder of the
year."
For now, signs of an economic slowdown capped price recovery.
Recession worries have intensified since the Bank of England's
warning of a drawn-out downturn after it raised interest rates
by the most since 1995.
"If commodities are not pricing in an imminent economic
recession, they might be preparing for a 'stagflation' era when
the unemployment rate starts picking up and inflation stays
high," said CMC Markets analyst Tina Teng.
(Reporting by Noah BrowningEditing by David Goodman)
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