Oil heads for weekly losses as Mideast worries ease and China demand is uncertain. Friday saw no movement in oil prices, but they were heading for a second week of losses as Middle East conflict-related supply worries subsided and China, the world’s largest importer of crude oil, continued to have uncertain demand.

At 07:35 GMT, U.S. West Texas Intermediate crude futures climbed 41 cents, or 0.5%, to $82.87 a barrel, while Brent crude futures were up 34 cents, or 0.4%, to $87.19 a barrel.

According to IG’s market strategist, Yeap Jun Rong, “oil prices have managed to ride on the improved risk environment higher as markets continue to bask in the hopes that the Fed is likely done with its rate-hiking process.”

“Nevertheless, there are still some reservations around the outlook for oil demand this week, as China’s PMI did not provide much conviction of a demand revival in place,” Yeap stated.

October saw an unanticipated decline in China’s industrial activity. The National Bureau of Statistics said on Wednesday that the official purchasing managers’ index (PMI) dropped to 49.5 in October from 50.2 in September, once again falling below the 50-point mark separating expansion from contraction.

China’s services industry grew at a slightly higher rate in October, according to a private sector poll released on Friday. However, sales climbed slowly in ten months, employment stalled, and company confidence declined.

Geopolitical concerns persisted, however, when Israeli soldiers surrounded Gaza City, the capital of the Gaza Strip, on Thursday in an attempt to overrun Hamas. The Palestinian militant organization, however, repelled their advance by launching hit-and-run operations from underground tunnels.

Israel-Hamas combat may be temporarily suspended to facilitate the safe evacuation of Gaza residents and the entry of humanitarian assistance, according to the White House. On Thursday, both benchmarks saw gains of more than $2 a barrel, but as of Friday, Brent was expected to report weekly losses of roughly 4%, while WTI was expected to settle 3% lower than it did the previous week.

On Wednesday, the Bank of England maintained interest rates at a 15-year high while the U.S. Federal Reserve kept rates unchanged. Oil prices continued to be underpinned by the steady rates as some market risk appetite returned.

According to expert forecasts, the world’s largest oil exporter, Saudi Arabia, is anticipated to reaffirm its voluntary reduction of 1 million barrels of oil output per day through December. Later in the day, U.S. oil rig count data is expected to provide insight into future work.