Fed’s Harker says high inflation calls for more rate hikes China mulls cutting quarantine time for visitors — report LONDON: Oil prices rose on Friday in choppy trade as hopes of stronger Chinese demand and output cuts by OPEC and its allies offset concern about a global economic downturn and the impact of interest rate rises on fuel use. To fight inflation, the US Federal Reserve is trying to slow the economy and will keep raising its short-term rate target, Federal Reserve Bank of Philadelphia President Patrick Harker said on Thursday in comments that weighed on oil. But crude is gaining support from a looming European Union ban on Russian oil, as well as the recent 2 million barrels-per-day output cut agreed by the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+. Brent crude was up $1.00, or 1.1 percent, at $93.38 a barrel by 1400 GMT. US West Texas Intermediate crude gained $1.14, or 1.4 percent, to $85.65. “It continues to look like oil is establishing a new range after a host of factors caused massive swings in the price, including the increasingly pessimistic global economic outlook and the huge 2 million cut to output from OPEC+,” said Craig Erlam, analyst at OANDA. “With several key Fed members taking turns at the hawk’s pulpit this week arguing for even higher interest rates, it blunted optimism from China’s reduced quarantine hopes,” Stephen Innes, managing director at SPI Asset Management said in a note. “Everyone is pining for a China-reopening-driven commodity boost, but we are not there yet.” Beijing is considering cutting the quarantine period for visitors to seven days from 10 days, Bloomberg news reported on Thursday, citing people familiar with the matter. There has been no official confirmation from Beijing. China, the world’s largest crude importer, has stuck to strict COVID-19 curbs this year, which weighed heavily on business and economic activity, lowering demand for fuel. A looming European Union ban on Russian crude and oil products, as well as the output cut from the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+, have supported prices recently. OPEC+ agreed on a production cut of 2 million barrels per day in early October.