By Anna Hirtenstein and Robert Harvey
LONDON (Reuters) -Oil prices were stable on Friday and heading for a weekly loss, as traders squared positions ahead of an OPEC+ meeting and showed caution over the possibility of a de-escalation of the trade dispute between China and the United States.
Brent crude futures were down 14 cents, or 0.23%, to $61.99 a barrel at 1312 GMT, while U.S. West Texas Intermediate crude futures fell 15 cents, or 0.25%, to $59.09 a barrel.
For the week, Brent was on track to fall 7.3% and WTI 6.2%.
On Friday, oil prices pared losses after U.S. jobs data showed payrolls increased by more than expected last month.
U.S. non-farm payrolls rose by 177,000 jobs in April, versus economists’ expectations for 130,000 new jobs, according to a Reuters poll. The unemployment rate was unchanged at 4.2%.
China’s Commerce Ministry said on Friday Beijing was evaluating a proposal from Washington to hold talks aimed at addressing U.S. President Donald Trump’s tariffs, signalling a possible easing of the trade tensions that have rattled global markets.
“There is some optimism when it comes to U.S.-China relations but the signs are only very tentative,” Harry Tchilinguirian, group head of research at Onyx Capital Group, said. “It’s still very fluid, a one step forward, two steps back situation when it comes to tariffs.”
A threat from Trump to impose secondary sanctions on buyers of Iranian oil complicates any talks as China is the world’s largest importer of Iran’s crude.
U.S. talks with Iran over its nuclear programme have been postponed after Trump reimposed a “maximum pressure” campaign against Iran that included efforts to drive the country’s oil exports to zero.
Investor concerns that the broader trade war could push the global economy into a recession and curb oil demand, just as the OPEC+ group prepares to raise output, have weighed on oil prices in recent weeks.
Reuters on Wednesday reported that Saudi Arabia, de facto leader of OPEC+, had briefed allies and industry experts that it was unwilling to prop up oil prices with further supply cuts.
Several OPEC+ members are set to suggest the group accelerates output hikes in June for a second consecutive month, Reuters previously reported. Eight OPEC+ countries will meet on May 5 to decide a June output plan.
(Reporting by Anna Hirtenstein in London. Additional reporting by Mohi Narayan in New Delhi, Shariq Khan in New York. Editing by Shri Navaratnam, Mark Potter and Barbara Lewis)
