Oil firms but sets to acquire more gains on output reduction optimism

Oil prices remained steady on Friday but are more likely to rake in more gains mainly from expectations that major oil manufacturers will implement larger oil reduction to aid demand slump in China, the world’s second-biggest oil importer.

Brent crude futures LCOc1 lost 9 cents to $56.25 per barrel at exactly 0224 GMT. Such followed after clocking in 1% from previous session. Brent crude added 3.3% for its weekly activity, its initial jump since week of Jan. 10.

U.S. West Texas intermediate (WTI) futures Clc1 shed 1 cent to $51.41 per barrel. The contract soared 0.5% on Thursday hitting 2.2% mark for its weekly session.           

Crude prices plummeted with a total of 20% loss from their 2020 high grounds on Jan. 8 as combination of oversupply concerns, slump in oil demand in China, and coronavirus contagion heavily affected the overall economic progress.

To mitigate the impact low demand, the Organization of Petroleum Exporting Countries and its associate manufacturers weighed on the possibility of cutting oil products by up to 2.3 million barrels per day.  In line with this, financial analysts warned that that demand impact contained within China only.