(Bloomberg) -- Oil was set to end the week little changed as concerns of an economic slowdown were tempered by optimism over Chinese demand.
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West Texas Intermediate futures traded near $81 a barrel after closing 1.1% higher on Thursday. US economic growth beat expectations in the last quarter of 2022, but there's still a considerable risk of a recession this year. The Federal Reserve is expected to boost interest rates further next week.
Oil has recovered from a steep drop at the start of the year, largely on hopes that Chinese consumption will recover rapidly following years of strict virus lockdowns. A weaker dollar has added to tailwinds for commodities priced in the currency, and liquidity is returning to the futures market.
Traders are assessing the potential fallout from European Union sanctions on Russia's seaborne shipments of petroleum products early next month. The EU is considering a plan to cap the price of premium refined fuel exports like diesel at $100 a barrel, with a lower $45 cap for discounted products.
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