LONDON, Feb 3 Reuters Oil prices steadied on Friday but were on track for a second week of losses as the market awaited further signs of fuel demand recovery in China and the impact of an EU embargo and price cap on Russian oil products.

Brent crude futures fell 18 cents, or 0.2, to 81.99 a barrel by 1043 GMT, having dropped by about 1 in the previous session. U.S. West Texas Intermediate WTI crude futures slipped by 14 cents, or 0.2, to 75.74.

Brent is poised to register a more than 5 decline this week while WTI is on course for a 4 drop.

Oil prices are likely to tread water until it becomes clear how dynamically Chinese demand will recover or what the consequences of the EU embargo and price caps will be, Commerzbank said.

ANZ analysts pointed to a sharp jump in traffic in China39;s 15 largest cities after the Lunar New Year holiday but also noted that Chinese traders had been relatively absent.

A slightly stronger dollar ahead of U.S. job data kept a lid on gains. A stronger U.S. currency can curb oil demand because it usually makes the dollarpriced commodity more expensive for those holding other currencies.

U.S. job growth in January is likely to have remained strong thanks to a resilient labour market, but expectations of a continued slowdown in wage gains offer the Federal Reserve some comfort in its fight against inflation, a Reuters survey showed.

The U.S. central bank scaled back to a milder rate increase than those over the past year, but policymakers…