|
Brent crude futures were up 14 cents, or 0.2%, at $87.02 per
barrel by 1008 GMT. U.S. West Texas Intermediate (WTI) crude
futures inched up 5 cents, or 0.1%, to $81.27 per barrel.
Both Brent and WTI had dipped earlier in the session, but were
on track for their first weekly gains - the biggest in two
months at around 4% and 6%, respectively - after three
consecutive weeks of decline.
Sending bullish signals, China is set to announce an easing of
its COVID-19 quarantine protocols within days, sources told
Reuters, which would be a major shift in policy in the world's
second biggest oil consumer, though analysts warn a significant
economic reopening is likely months away.
Also underpinning oil prices, the U.S. dollar, which typically
trades inversely with oil, hit five-month lows.
Meanwhile, European Union governments tentatively agreed on a
$60 a barrel price cap on Russian seaborne oil with an
adjustment mechanism to keep the cap at 5% below the market
price, according to diplomats and a document seen by Reuters.
This still needs formal approval before the bloc's sanctions on
Russian crude kick in on Dec. 5. Russian Urals crude traded at
around $70 a barrel on Thursday afternoon.
Poland, which had pushed for the cap to be as low as possible,
had not confirmed that it would support the deal, an EU diplomat
said.
OPEC+ is widely expected to stick to its latest target of
reducing oil production by 2 million barrels per day (bpd) when
it meets on Sunday, but some analysts believe that crude prices
could fall if the group does not make further cuts.
"This week’s price rebound has taken Brent to within touching
distance of the $90/bbl threshold and may temper appetite among
(OPEC+'s) leadership for fresh price-supportive cuts," said PVM
analyst Stephen Brennock.
"That being said, the prospect of subdued Chinese oil demand and
more U.S. (strategic petroleum reserve) releases could prompt
pre-emptive action by the alliance. Either way, the ingredients
are there for price fireworks come Monday morning."
(Additional reporting by Mohi Narayan in New Delhi; Editing by
Kim Coghill)
[© 2022 Thomson Reuters. All rights
reserved.]
This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
|
|
