Oil prices rose modestly on Friday, extending gains for a second session on the back of solid US economic data and renewed optimism that the reopening of the Chinese economy would boost demand.

Brent futures were up 30 cents, or 0.3%, to USD 87.66 a barrel by 0113 GMT, while US crude was up 21 cents, or 0.3%, to USD 81.22 per barrel.

On Thursday, both benchmarks had gained more than 1%. If gains held, Brent would achieve its second weekly increase.

Improving US GDP and inflation figures gave hope that the US Federal Reserve could moderate the pace of interest rate hikes, lowering fears of a drop in economic activity and, as a result, oil consumption.

Meanwhile, the Centers for Disease Control and Prevention reported earlier this week that critically ill COVID-19 cases in China are down 72% from a peak earlier this month, and daily mortality among COVID-19 patients in hospitals are down 79% from their peak. The statistics indicate that China's economy is normalising, raising hopes for a resurgence in oil consumption.

Crude prices were also boosted by robust demand for jet fuel and diesel, which are in short supply. In addition, the European Commission is proposing that the European Union put a price restriction of USD 100 per barrel on premium Russian oil products such as diesel and USD 45 per barrel on discounted items such as fuel oil, according to EU officials on Thursday.

The increases, notably in US crude, were tempered by a 4.2 million barrel build in stockpiles at Cushing, the NYMEX oil futures pricing hub, earlier this week.

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