Oil firms on bets OPEC+ will talk up output cuts to stem sinking prices

Oil firms on bets OPEC+ will talk up output cuts to stem sinking prices

MELBOURNE: Oil prices climbed on Friday on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5, but the benchmarks were still on track to post their worst weekly drop in four on fears COVID-19 curbs in China and weak global growth will hit demand.

Brent crude futures rose $1.20, or 1.3%, to $93.56 a barrel at 0117 GMT, while U.S. West Texas Intermediate (WTI) crude futures jumped $1.16, or 1.3%, to $87.77 a barrel.

Both benchmark contracts slid 3% in the previous session to two-week lows. Brent was headed for a weekly drop of nearly 8%, and WTI was on track to fall about 6% for the week.

The Organization of the Petroleum Exporting Countries and allies, together called OPEC+, are due to meet on Sept. 5 against a backdrop of sliding prices and falling demand, even as top producer Saudi Arabia says supply remains tight.

ANZ commodities analyst Daniel Hynes said it might be a bridge too far for OPEC+ to agree to cut output but that top producer Saudi Arabia will likely highlight what it sees as a disconnect between current prices and tight supply fundamentals.

"They will certainly try to talk up the market as much as possible