With prospects of tighter supplies, crude prices appeared poised to end a two-week losing skid on Friday as benchmark Brent lingered above $87 per barrel.

Brent crude ticked up by 1.1% at $87.81 per barrel meanwhile WTI advanced by 1.1%, to $84.58 per barrel.

It is believed that Saudi Arabia will extend its voluntary 1 million barrel per day (bpd) oil production cut into October, extending supply restraints designed to support prices by the Organization of the Petroleum Exporting Countries (OPEC) and its partners, sometimes known as OPEC+.

According to surveys by the U.S. Energy Information Administration, there has been a strong demand for oil in the country, as commercial crude stockpiles have decreased in five of the past six weeks.

The production-consumption balance around the world is thought to fluctuate in response to changes in U.S. stockpiles.

The worst of the crisis facing the euro zone's struggling factories may have passed last month, according to private assessments, and China's surprising recovery gave export-dependent nations some reason for optimism.

Although the world's largest oil importer, China, is expected to support oil demand for the remainder of 2023, investors are worried due to the slow pace of the nation's economic recovery. OPEC and the International Energy Agency both rely on China to do this.