Oil prices fell lower in early Asian trade on Friday as the U.S. dollar pared some losses while easing COVID 19 curbs in two Chinese cities limited losses.
Brent crude futures fell 11 cents or 0.1% at $86.77 per barrel by 1: 28 GMT, while U.S. West Texas Intermediate WTI crude futures lost 14 cents or 0.2% to $81.08 per barrel.
The U.S. dollar, which trades inversely with oil, edged higher after dipping to 16 week lows against a basket of major currencies after data showing U.S. consumer spending increased solidly in October.
Both benchmarks were on course for their first weekly gains after three consecutive weeks of decline, as COVID- 19 curbs were eased in two major Chinese cities.
The cities of Chongqing and Guangzhou announced the easing of COVID curbs on Wednesday.
According to diplomats and documents seen by Reuters, the European Union governments tentatively agreed on a $60 a barrel price cap on Russian seaborne oil with an adjustment mechanism to keep the cap at 5% below the market price.
All EU governments must approve the agreement in a written procedure by Friday. An EU diplomat said Poland, which had pushed for the cap to be as low as possible, had not confirmed that it would support the deal.