2022.12.0208:59:00UTC+00Oil On Track For A Weekly Gain On China Optimism

Oil prices fell slightly on Friday but were on course for their biggest weekly gain in almost two months on signs of easing COVID-19 restrictions in China and the prospect of steady OPEC supply.

Benchmark Brent crude futures slipped 0.1 percent to $86.78 a barrel, while WTI crude futures were down 0.3 percent at $80.98.

While troubling U.S. manufacturing data and uncertainty over the outcome of Sunday's OPEC+ meeting weighed on prices, the downside remained capped by a weaker dollar and news that the U.S. government may pause sales from its strategic petroleum reserves.

Meanwhile, the Wall Street Journal reported that the European Union is moving toward a price cap of $60 a barrel on Russian crude.

The dollar steadied near 16-week low ahead of key U.S. jobs data due later in the day that is expected to show a sizable slowdown in hiring.

China, the world's second-largest economy, is easing pandemic-related movement restrictions that should help boost oil demand.

After a week of historic protests, cities such as Shanghai, Guangzhou, Beijing and Shijiazhuang in the north, Chengdu in the southwest have announced an easing of the COVID curbs.