Oil benchmarks recovered after global supply excess and poor Chinese demand threatened a weekly loss.

Brent crude prices rose by 2.6% to $75.98 a barrel, while West Texas Intermediate futures rose by 2.6% to $71.16.

Both benchmarks fell to their lowest since late June, indicating oversupply. OPEC+ members agreed to cut output by 2.2 million barrels per day in the first quarter of next year.

However, Kpler head crude analyst Viktor Katona expects total output from OPEC+ countries to reduce by only 350,000 bpd from December 2023 to January 2024.

Brent and WTI futures are expected to decline 3.9% and 4% this week.