Shafaq News / Oil prices reversed earlier losses and inched up in Asian trade on Friday, supported by a weaker U.S. dollar and falling diesel inventories, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.

Brent crude futures rose 31 cents, or 0.3%, to $94.88 per barrel at 0622 GMT, while U.S. West Texas Intermediate (WTI) crude futures were up 36 cents, or 0.4%, at $89.47 per barrel.

"The softened U.S. dollar and the strong rebound in risk assets lifted oil prices. The rebounding momentum may continue into today's Asian session," said Tina Teng, an analyst at CMC Markets, as a weaker dollar usually makes dollar-denominated commodities like oil cheaper for holders of other currencies.

"OPEC+'s output cut will keep supporting crude prices, along with a possible recovery in China's demand in the fourth quarter if Beijing loosens up COVID curbs," Teng added.

China, the world's largest crude oil importer, has been fighting COVID flare-ups after its week-long National Day holiday earlier this month and just ahead of a key Communist Party Congress where President Xi Jinping is expected to extend his leadership.

The country's infection tally is small by global standards, but it adheres to a zero-COVID policy which is weighing heavily on economic activity.

Both Brent and WTI contracts were down for the week by about 3% after two prior weeks of gains amid recession concerns.

(Reuters)