Oil prices remained stable in Asian trade on Friday. Supply concerns rose as attention turned to the next meeting between OPEC and its allies, but recession fears capped gains.

West Texas Intermediate (WTI) crude futures for September delivery rose 38 cents, or 0.4%, to $96.80 a barrel as of 0330 GMT, reversing losses from the previous session. WTI is on track to gain around 3% for this week.

Brent crude futures for September settlement, due to expire on Friday, were flat at $107.14 a barrel. The more active October contract rose 8 cents, or 0.1%, to $101.91.

Manufacturers are solving the record 9.7 million barrels per day (bpd) supply cut they agreed on in April 2020, when the COVID-19 pandemic hit demand. The next meeting of the Organization of the Petroleum Exporting Countries (OPEC) and its Russian-led allies on August 3 will be a key driver.

Oil prices are unlikely to see deep losses due to the weak US dollar and continued supply tightness.

The OPEC+ group is likely to consider keeping oil production unchanged for September or discuss a modest increase.

A senior US administration official said on Thursday that the government is optimistic about the OPEC+ meeting and that the extra supply will help stabilize the market.

The decision not to increase production would disappoint the United States after US President Joe Biden visited Saudi Arabia this month hoping to reach an agreement on oil production.

However, analysts said it would be difficult for OPEC+ to increase supply, given that many producers are struggling to meet production quotas due to the lack of necessary investment in oil fields.

OPEC production is limited, although supply has stabilized in Libya and Ecuador. Insufficient investment in many member states will continue to constrain production.