Oil prices rose on expectations that OPEC+ will consider output cuts at their meeting on September 5, but the benchmarks continued to be on course for their biggest weekly decline due to concerns that COVID-19 restrictions in China and sluggish global economy will hurt demand.

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Brent crude prices increased $1.20, or 1.3%, to $93.56 per barrel while WTI crude futures in the United States rose $1.16, or 1.3%, to $87.77 per barrel.

In the previous session, both benchmark contracts fell 3% to two-week lows. Brent was on course for a weekly decrease of over 8%, while WTI was on track for a 6% drop.

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The Organization of Petroleum Exporting Countries and its allies, known as OPEC+, are set to meet on September 5 amid a backdrop of declining prices and demand, although Saudi Arabia claims supply remains tight.

OPEC+ cut its demand prediction this week, now expecting demand to slow down supply by 400,000 barrels per day (BPD) in 2022, but a market shortage of 300,000 BPD in 2023, according to Reuters.

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Investors are concerned about the short-term effects of the new COVID-19 restrictions in China, where Chengdu was the latest city to announce a lockdown on Thursday, affecting companies like Volvo.

This occurred on the same day that statistics revealed Chinese factory activity dropped for the first time in three months in August due to declining demand, while power shortages and COVID-19 outbreaks interrupted output.

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Meanwhile, India’s manufacturing sector activity in August witnessed the second-strongest improvement in operating conditions in nine months, boosted by strengthening demand conditions and softening inflation concerns, a monthly survey said on Thursday.

The seasonally adjusted S&P Global India Manufacturing Purchasing Managers’ Index (PMI) was little changed from July’s reading of 56.4, posting 56.2 in August.

On the other hand, Goods and Services Tax (GST) collections increased 28% to Rs 1.43lakh crore in August, the Indian Finance Ministry said on Thursday.

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In August, GST collection surpassed Rs 1.4 lakh crore for the sixth consecutive month. The gross GST revenue collected in August 2022 stood at Rs 1,43,612 crore of which Central GST is Rs 24,710 crore, State GST is Rs 30,951 crore, Integrated GST is Rs 77,782 crore (including Rs 42,067 crore collected on import of goods) and cess is Rs 10,168 crore (including Rs 1,018 crore collected on import of goods), the ministry said.