Oil prices are heading for weekly gains, with the possibility of OPEC + reducing production

Oil prices are heading for their first weekly gain in five weeks on Friday, supported by the decline in the US dollar and the possibility of the OPEC + group agreeing to reduce crude production when it meets on the fifth of October.

Brent crude futures for November rose 95 cents, or 1.07 percent, to $89.44 a barrel by 0948 GMT. December futures rose 81 cents to $87.99 a barrel.

US West Texas Intermediate crude futures also rose 72 cents, or 0.89 percent, to $81.95 a barrel.

Brent and West Texas Intermediate each rose more than one percent earlier in the session and are heading for weekly gains of about four percent, their first weekly rise since August, after recording their lowest levels in nine months during the past days.

Oil prices rose, supported by the dollar’s decline earlier in the week from its highest levels in 20 years. The dollar’s decline makes US-denominated oil cheaper for holders of other currencies, improving demand.

Analysts also expect the volume of purchases to increase as Russia prepares to annex four Ukrainian regions on Friday, in a move that could prompt Washington to tighten sanctions on Moscow.

The market received new support from the possibility that the Organization of Petroleum Exporting Countries (OPEC) and its allies will cut production quotas at their meeting to be held on the fifth of October.

Analysts expect production cuts as demand concerns related to a possible global economic recession and higher interest rates weighed on crude oil prices.

Brent and West Texas Intermediate prices are likely to end the third quarter with a significant drop of 23 percent.