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Oil prices were little changed in early trading on Friday, but they are heading for their first weekly gain in five weeks, supported by the decline in the US dollar and the possibility of the OPEC + group agreeing to cut crude production when it meets on the fifth of October.
US West Texas Intermediate crude futures for November delivery rose 6 cents to $81.29 a barrel at 0054 GMT, after falling 92 cents in the previous session.
Brent crude futures for November also rose by 2 cents to $88.51 a barrel, after losing 83 cents in the previous session.
Both Brent and West Texas Intermediate are heading towards a rise of about 3 percent this week, their first weekly rise since August, after recording their lowest levels in nine months during the past days.
Analysts said the market appeared to have found ground, as supply is set to shrink with the European Union’s ban on Russian oil imports from Dec. 5. However, the main unknown is how much demand will fall as global growth slows in the face of higher interest rates.
Three sources told Reuters that senior members of the Organization of the Petroleum Exporting Countries (OPEC) and allies led by Russia called OPEC+ began discussing production cuts ahead of their meeting on Wednesday.
A source said early last week that Russia may propose a cut of up to 1 million barrels per day.
Oil prices also rose due to the dollar’s decline from its highest level in 20 years last week. A weaker dollar makes dollar-denominated oil cheaper for buyers holding other currencies, which improves demand for the commodity.
