LONDON: Oil prices rose slightly on Friday after the decision by the Organization of the Petroleum Exporting Countries and its allies, known as OPEC+, to keep its production policy unchanged, but benchmarks remained on track for weekly losses on China demand growth fears, according to Reuters. Brent crude futures were up 27 cents, or 0.3 percent, at $78.97 a barrel by 3:15 p.m. Saudi time and US West Texas Intermediate crude futures gained 23 cents, or 0.3 percent, to $74.05. The Brent benchmark had approached $85 a barrel in Monday trading. Two OPEC+ sources said on Thursday that the group has kept its output policy unchanged and will decide in March whether to extend the voluntary oil production cuts in place for the first quarter. The organization has output cuts of 2.2 million barrels per day in place for the first quarter, as announced in November. “What has been already been made clear last year is that the reversal of those cuts will be gradual,” said UBS analyst Giovanni Staunovo, adding that the bank expects an extension into the second quarter. Also supporting oil prices was the US Federal Reserve’s decision to keep the benchmark overnight interest rate in the 5.25-5.50 percent range and comments by Fed Chair Jerome Powell, saying interest rates had peaked and would move lower in the coming months. Lower interest rates would reduce consumer borrowing costs, which can boost economic growth and oil demand. However, oil prices were still heading for weekly losses of about 5 percent after unsubstantiated reports of a ceasefire between Israel and Hamas capped gains and caused the contracts to settle more than 2 percent lower on Thursday. Concern over China’s economic recovery continued to linger, with the International Monetary Fund on Friday forecasting that the country’s economic growth would slow to 4.6 percent in 2024 and decline further in the medium to about 3.5 percent in 2028. Meanwhile, concern over shipping dragged on after a military spokesperson for the Iran-aligned Houthi group said on Thursday that attacks on shipping will persist until Israel’s “siege on the Gaza Strip is lifted.”