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Oil prices tumbled 3% on Thursday, as new COVID-19 lockdown measures in China added to worries. Image Credit: AFP

Dubai: Oil rose on Friday - paring a weekly drop - before an OPEC+ meeting on supply at which Saudi Arabia could push for output cuts.

Brent crude futures rose $1.23, or 1.3 per cent, to $93.59 a barrel at 0630 GMT, while US West Texas Intermediate (WTI) crude futures advanced $1.25, or 1.4 per cent, to $87.86 a barrel.

Both benchmark contracts slid 3 per cent in the previous session to two-week lows. Brent was headed for a weekly drop of nearly 7 per cent, and WTI was on track to fall about 5 per cent for the week. Crude has come under pressure this week as tighter monetary policy and renewed anti-virus lockdowns in China spurred concern that consumption will weaken. The dollar’s jump to an all-time high has also weighed on prices in the run-up to Monday’s OPEC+ gathering.

The retreat poses a challenge for the Organization of Petroleum Exporting Countries and its allies, with ministers due to meet on Monday to plan output policy. While OPEC-watchers expect the group to keep supply steady, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman raised the possibility of a production cut in remarks last week.

“After the massive losses of the past three sessions, we may see some consolidation,” said Vandana Hari, founder of Vanda Insights in Singapore. “Our base case is a rollover by OPEC+ for October, but traders may be cautious not to short crude further until the outcome of Monday’s meeting is known.”

Widely-watched time spreads, one indicator of market tightness, have been volatile. Brent’s prompt spread - the difference between its nearest two contracts - was $1.21 a barrel in a backwardation, compared with almost $2 a barrel last Friday and 63 cents two weeks ago.

Group of Seven finance ministers including Treasury Secretary Janet Yellen are due to hold talks later Friday on a US-led plan to try to cap the price of Russian crude to choke off the flow of funds Moscow uses to finance its war in Ukraine. Earlier this week, the UK signaled its support for the proposal.