Brent crude oil traded near $81 a barrel on Friday after China cut interest rates and on speculation OPEC could agree next week to reduce oil production.
China’s central bank cut its benchmark interest rates for the first time in more than two years on Friday to lower borrowing costs and support an economy on track for its slowest annual growth in 24 years.
The rate cut added to a positive mood among oil traders anticipating an agreement by the Organization of the Petroleum Exporting Countries on Nov. 27 to trim production in an attempt to bolster oil prices.
Brent surged $2.19 to trade at $81.52 shortly before 8 a.m. EDT. The benchmark looked set to snap an eight-week losing streak if the gains were sustained on Friday.