Following a two-day increase, oil prices were subdued and were on course for a weeklong decline

After a two-day jump on indications of increased U.S. demand, oil prices traded flat on Friday, but were still poised for weekly losses due to concerns about a Chinese slowdown and a probable Iranian-led supply glut.

At 20:19 ET (00:19 GMT), West Texas Intermediate Futures jumped 0.1% to $90.62 per barrel, while London-traded Brent oil futures increased 0.1% to $96.62 per barrel. In response to a string of positive demand indicators from the United States, both contracts have risen between $2 and $3 during the past two days.

Nonetheless, they were anticipated to lose over 2% each for the week, as negative economic news from China, a major importer, drastically lowered prices at the beginning of the week. According to data released on Monday, Chinese industrial output dropped in July, while the People's Bank of China unexpectedly slashed interest rates in reaction to lackluster development.

Speculation regarding the possible revival of the Iran nuclear deal, which might result in the lifting of numerous Western sanctions against the country, further reduced oil prices. It is predicted that this action will enhance daily supply by more than one million barrels.

Concerns over slowing global economic growth have drastically lowered oil prices in recent months, with prices recently reaching their lowest levels since February, wiping out all gains made due to supply bottlenecks caused by the Russia-Ukraine conflict.

Nonetheless, this week's second half showed minimal price support. Two days ago, oil prices increased as a result of a larger-than-anticipated fall in U.S. crude inventories and signs that gasoline consumption in the country was rising steadily.

Traders also hypothesized that the Organization of the Petroleum Exporting Countries (OPEC) and its allies (OPEC+) could restrict output to stabilize prices.

Despite the cartel's recent return to pre-COVID production levels, OPEC Secretary-General Al Ghais has recently hinted at a supply cut if prices continue to fall.

Ghais also reassured entrepreneurs that forecasts of an economic collapse in China were exaggerated.