Investing.com-- Oil prices rose in Asian trade on Friday, recovering some recent losses after China said it was open to trade talks with the U.S., sparking hopes for a deescalation in a bitter trade war between the two economic powerhouses.

But crude prices were still headed for steep weekly losses, as soft economic prints from the U.S. and China ramped up concerns over slowing demand.

Markets were also positioning for a meeting of the Organization of Petroleum Exporting Countries and allies, where the cartel is widely expected to announce more increases in production.

Brent oil futures for July rose 0.8% to $62.62 a barrel, while West Texas Intermediate crude futures rose 0.9% to $59.19 a barrel by 22:11 ET (02:11 GMT).

But despite Friday’s gains, both contracts were trading down between 5% and 7% for the week, their second straight week in red.

China says it’s open to US trade talks

China’s commerce ministry said on Friday that the country was evaluating the possibility of trade talks with the U.S., although it emphasized that any dialogue must be sincere and preceded by the removal of unilateral tariffs.

The comments come after state media reported earlier this week that U.S. officials had reached out to China to open trade negotiations. Recent comments from U.S. officials also signaled some openness to dialogue.

Any opening of trade talks potentially marks a deescalation in a trade war between the two countries, after they imposed trade tariffs of over 100% on each other through April.

The trade conflict was a major point of uncertainty for oil, given that it involves the world’s two largest oil consumers. Threats of more tariffs from U.S. President Donald Trump, along with Beijing initially striking a hardline stance of trade talks, had rattled oil prices earlier this year.

Markets feared that economic ructions stemming from a prolonged trade conflict will hurt global oil demand. Weak gross domestic product and purchasing managers index data from the U.S. and China, released earlier this week, furthered this notion.

OPEC+ meeting on tap, oil braces for production hikes

Focus was now squarely on an upcoming OPEC+ meeting, scheduled for May 5, for more cues on the cartel’s plans to increase production.

Reuters reported earlier this week that Saudi Arabia, the de facto leader of OPEC+, has signaled to allies that it is unwilling to further support oil prices with more supply cuts. Earlier reports showed several OPEC+ members were also preparing to announce output hikes for June, as they scale back production cuts from over the past two years.

The production group’s willingness to increase output comes amid persistent calls from President Trump for higher oil supplies and lower prices.

But Trump’s comments on Thursday buoyed oil prices, after he threatened to impose secondary sanctions on buyers of Iranian oil. The U.S. this week also imposed stricter sanctions on Iranian oil, ahead of talks over its nuclear program.