Oil prices edged higher Friday, rebounding after the previous session’s sharp losses after the White House denied a report that a nuclear deal between the U.S. and Iran was in the offering.

U.S. crude futures traded 0.3% higher at $71.50 a barrel, while the Brent contract rose 0.3% to $76.18 a barrel.

Both benchmarks had broken key support levels on Thursday–$70 in the case of the U.S. contract and $75 for Brent– after a report appeared on the Middle East Eye website of an interim deal that would allow the Islamic republic to legally export some of its sanctioned oil, increasing global supply.

This was subsequently refuted by U.S. authorities, with a spokesperson for the White House National Security Council calling the report “false and misleading.”

This has helped the market rebound Friday, along with weakness in the U.S. dollar as expectations of the Federal Reserve pausing its year-long rate-hiking cycle next week have grown.

A weaker buck makes commodities, including oil, which are denominated in dollars, cheaper for foreign buyers, boosting demand.

Oil prices had also risen early in the week, buoyed by Saudi Arabia’s pledge over the weekend to cut output

However, gains have been minimal Friday as remain concerned about the worsening outlook for consumption. 

Data released earlier Friday showed Chinese producer inflation fell at its sharpest pace in seven years, adding to a string of weak numbers which suggested that the largest crude importer in the world was struggling to recover from its COVID hit.

Numbers out of Europe showed that the eurozone fell into recession during the first three months of the year, while the number of Americans filing new claims for unemployment benefits surged to the highest in more than 1½ years last week. 

Rounding off the week, data from Baker Hughes detailing the number of U.S. oil rigs in operation will be studied for clues on future supply levels, while positioning data from the CFTC are also scheduled for later in the session.