SINGAPORE, Nov 3 Reuters Oil prices were little changed on Friday, but headed for a second week of losses as supply concerns driven by conflict in the Middle East eased, while the demand outlook from the world39;s top crude importer China remained uncertain.

Brent crude futures rose 34 cents, or 0.4, to 87.19 a barrel at 0735 GMT, while U.S. West Texas Intermediate crude futures gained 41 cents, or 0.5, to 82.87 a barrel.

Oil prices have managed to ride on the improved risk environment higher, as markets continue to bask in the hopes that the Fed is likely done with its rate hiking process, said Yeap Jun Rong, market strategist at IG.

Nevertheless, there are still some reservations around oil demand outlook this week as China39;s PMI did not provide much conviction of a demand revival in place, Yeap added.

China39;s manufacturing activity unexpectedly contracted in October. The official purchasing managers39; index PMI fell to 49.5 in October from 50.2, dipping back below the 50point level demarcating contraction from expansion, data from the National Bureau of Statistics showed on Wednesday.

On Friday, a private sector survey showed China39;s services activity expanded at a slightly faster pace in October, but sales grew at the softest rate in 10 months and employment stagnated as business confidence waned.

Meanwhile, geopolitical concerns remained in focus, as Israeli forces on Thursday encircled Gaza City  the Gaza Strip39;s main city in their assault on…