Oil prices rose by 4% on Friday as the dollar eased, with an EU ban on Russian oil looming large and investors weighing the prospects for an easing of China’s COVID curbs.
Though fears of global recession capped gains, Brent crude futures were up $3.81, at $98.48 a barrel set for a weekly gain of nearly 3%.
U.S. West Texas Intermediate (WTI) crude futures were up $4.14, or 4.7%, at $92.31 and on course for a weekly gain of 5%.
Both contracts were supported by a weaker dollar, which can boost oil demand because it makes the commodity cheaper for those holding other currencies.
While demand concerns weighed on the market, supply is expected to remain tight because of Europe’s planned embargoes on Russian oil and a slide in U.S. crude stockpiles.
The EU ban on Russian crude imports is due to take effect from Dec. 5. Details of G7 price capaimed at alleviating constraints on Russian flows outside the EU are still under discussion.
China, meanwhile, is sticking to its strict COVID-19 curbs after cases rose on Thursday to their highest since August, but a former Chinese disease control official said substantial changes to the country’s COVID-19 policy are to take place soon.
China’s stock markets have been buoyed this week by the rumours of an end to stringent lockdowns despite the lack of any announced changes.