FX.co ★ Oil Rebounds But Headed For Sharp Weekly Loss

Oil prices rose sharply on Friday ahead of next week's OPEC+ meeting to discuss output cuts.

The rebound comes after the United States said that a new response received from Iran on reviving a landmark nuclear deal of 2015 was unconstructive, putting a new hurdle on finalizing the agreement.

Benchmark Brent crude futures jumped $1.89, or 2.1 percent, to $94.25 a barrel, while U.S. West Texas Intermediate (WTI) crude futures were up $1.83, or 2.1 percent, at 88.44 a barrel.

Both contracts fell around 3 percent to two-week lows in the previous session, as new COID-19 lockdown restrictions in China added to global growth worries.

Brent was on course for a weekly drop of nearly 7 percent and WTI was set for a weekly fall of about 5 percent on lingering worries about inflation and aggressive policy tightening by major central banks.

The Organization of the Petroleum Exporting Countries (OPEC) are scheduled to meet on September 5 against a backdrop of sliding prices and falling demand.

Any reduction in supply may have a material impact on prices given the very low levels of inventory globally.

An effort to save the Iran nuclear deal appeared to hang in the balance after a U.S. State Department spokesperson said Tehran's latest reply to the European Union proposal was "not constructive."

Meanwhile, the Group of Seven finance ministers will meet today to decide on a price cap on Russian oil.