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Brent crude futures firmed by $1.09, or 1.46%, to $75.79 a
barrel by 1040 GMT. U.S. West Texas Intermediate crude rose
$1.20, or 1.76%, to $69.55.
Both benchmarks hit more than one-year lows this week and are on
track for their biggest weekly falls since December at about 9%.
Oil and other global assets were pressured this week by the
collapse of Silicon Valley Bank (SVB) and Signature Bank and
trouble at Credit Suisse and First Republic Bank.
But prices recovered some ground on Friday after support
measures from the European Central Bank and U.S. lenders.
The dollar, meanwhile, is being kept under pressure by
expectations of less aggressive increase to interest rates by
the U.S. Federal Reserve next week. A weaker dollar makes oil
cheaper for holders of other currencies and typically supports
oil prices.
"The conditions for volatile trading remain intact. The oil
price roller-coaster is pausing for breath but is by no means
over," said Stephen Brennock of oil broker PVM.
Further support came from OPEC+ members attributing this week's
price weakness to financial drivers rather than any supply and
demand imbalance, adding that they expected the market to
stabilise.
A meeting between oil producers Saudi Arabia and Russia on
Thursday also calmed fears.
Meanwhile, WTI's fall this week to less than $70 a barrel for
the first time since December 2021 could spur the U.S.
government to start refilling its Strategic Petroleum Reserve,
boosting demand.
Analyst expectations on China's demand recovery also supported
the price rebound, with U.S. crude exports to China in March
heading towards their highest in nearly two and a half years.
"This leaves sufficient (foreseeable) support for the oil price
with OPEC+ having to convene an extraordinary meeting,"
Commerzbank said on Friday.
An OPEC+ monitoring panel is due to meet on Apr. 3.
(Reporting by Rowena Edwards in LondonAdditional reporting by
Florence Tan and Trixie Yapin SingaporeEditing by David Goodman)
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