Dec 2 Reuters Oil futures were mixed on Friday, as hopes for further relaxation of COVID curbs in China, which could help demand recover in the world39;s second biggest economy, boosted market sentiment, but a firmer U.S. dollar capped gains.

Brent crude futures were down 1 cent, or 0.01, at 86.87 per barrel by 0731 GMT, after earlier rising to 87.40.

U.S. West Texas Intermediate WTI crude futures slipped 21 cents, or 0.3, to 81.01 per barrel, after climbing to 81.63 earlier in the session.

Both benchmarks were on track for their first weekly gains after three consecutive weeks of decline.

China is set to announce an easing of its COVID19 quarantine protocols in coming days and a reduction in mass testing, sources told Reuters, which would be a major shift in policy following the widespread protests and public anger over the world39;s toughest curbs.

IMF managing director Kristalina Georgieva said on Friday a further calibration of China39;s COVID strategy would be critical to sustaining and balancing the economy39;s recovery.

Oil demand has suffered under the strict measures to contain the virus, with implied oil demand currently at 13 million barrels per day bpd, 1 million barrels bpd lower than average, analysts at ANZ Research said in a note.

The oil market was subdued, however, by the U.S. dollar , which typically trades inversely with oil, as the greenback edged off 16week lows against a basket of major currencies after data showed U.S. consumer spending…