Oil stabilizes due to stronger dollar

Oil prices declined during early Asian trade on Friday as the U.S. dollar cut its losses slightly. In turn, easing of COVID-19 restrictions in two Chinese cities compensated for the strengthening of the dollar.

The U.S. dollar rose after the release of data showing a significant increase in consumer spending in the U.S. in October.

Despite this, both Brent and WTI posted their first weekly gains after three consecutive weeks of declines as COVID-19 restrictions were loosened in Guangzhou and Chongqing.

In addition, according to Reuters sources, European Union governments have reached a tentative agreement to cap the price of Russian oil shipped by sea at $60 a barrel with an adjustment mechanism to keep that price 5% below market.

All EU governments have until Friday to approve the agreement in writing. According to an EU diplomat, Poland has not yet confirmed at this time that it will support the agreement.

Investors and traders are focused on the OPEC+ meeting on December 4 and the EU's embargo on Russian oil, scheduled to take effect on December 5.