Oil tankers sail along Nakhodka Bay near the port city of Nakhodka
Oil tankers sail along Nakhodka Bay near the port city of Nakhodka, Russia August 12, 2022. Reuters

Oil prices inched up in early trade after OPEC+ nations reaffirmed their oil output targets ahead of a European Union ban and price caps on Russian crude, which kick off on Monday.

At the same time, in a positive sign for fuel demand, more Chinese cities eased COVID-19 curbs over the weekend.

Brent crude futures climbed 39 cents, or 0.5%, to $85.96 a barrel at 2309 GMT, while U.S. West Texas Intermediate (WTI) crude futures rose 37 cents, or 0.5%, to $80.35 a barrel.

The Organization of the Petroleum Exporting Countries and allies including Russia, together called OPEC+, agreed on Sunday to stick to their October plan to cut output by 2 million barrels per day (bpd) from November through 2023.

Analysts said the OPEC+ decision was expected as major producers wait to see the impact of the EU import ban and Group of Seven (G7) $60-a-barrel price cap on seaborne Russian oil, with Russia threatening to cut supply to any country adhering to the cap.

"Given the unprecedented uncertainties, the OPEC+ watch and wait strategy appears very sound," RBC Capital Markets analysts said in a note.

China