Oil is falling but still in the way to record weekly gains

Oil prices fell in early Asian trade on Friday after the dollar recovered some of its losses, while the easing of anti-COVID-19 restrictions in two Chinese cities limited losses.

By 0128 GMT, Brent crude futures fell 11 cents, or 0.1 percent, to $86.77 a barrel, while West Texas Intermediate crude futures fell 14 cents, or 0.2 percent, to $81.08 a barrel.

The dollar rose after falling to a 16-week low against a basket of major currencies after data revealed that consumer spending in the United States increased strongly in October.

The two benchmarks are still in the process of recording their first weekly gains after three consecutive weeks of declines, with two Chinese cities easing anti-Covid-19 restrictions.

On Wednesday, Guangzhou and Chongqing announced the easing of anti-epidemic restrictions.

At the same time, diplomats and a document seen by Reuters revealed that EU governments had agreed to implement a cap on the price of Russian seaborne oil at $60 a barrel, with an adjustment mechanism to keep the price five percent below market level.

An EU diplomat said that all EU governments must agree in writing to the decision no later than Friday. So far Poland, which has sought to lower the price cap as much as possible, has not confirmed it will support the agreement.