MOSCOW-Crude oil prices rose on Friday, recovering from two days of declines, after data showing a rise in U.S. retail sales helped to ease recession concerns, although a bearish outlook from OPEC capped gains. Brent crude LCOc1 was up 28 cents at $58.51 a barrel at 1326 GMT, after falling 2.1% on Thursday and 3% the previous day. U.S. crude CLc1 fell 19 cents to $54.28 a barrel, having dropped 1.4% in the previous session and 3.3% on Wednesday.

U.S. retail sales rose 0.7% in July as consumers bought a range of goods even as they cut back on vehicle purchases, Thursday’s data showed. That came a day after a sell-off in world markets that followed the U.S. Treasury yield curve’s first inversion since June 2007 - a development usually seen as a reliable predictor of looming recession.

“Today, oil appears on the rise following the possibility of direct communication between U.S. President Donald Trump and Chinese President Xi Jinping,” said Harry Tchilinguirian from BNP Paribas. He said the rebound could be short-lived: “As darker clouds gather on the economic horizon, the ensuing pessimism is likely to limit financial players’ appetite for risky assets, including oil.”

Oil pared gains after OPEC said in its monthly report that oil market fundamentals look somewhat bearish for the rest of 2019 and trimmed its global oil demand forecast due to a slowing economy. BNP Paribas cut its WTI price forecast for 2019 by $8 to $55 per barrel and for Brent by $9 to $62 per barrel, citing slowing economy amid a U.S.-China trade dispute. Earlier this week, data releases included a surprise drop in industrial output growth in China to a more than 17-year low, and a fall in exports that sent Germany’s economy into reverse in the second quarter.

The price of Brent is still up nearly 10% this year helped by supply cuts led by the Organization of the Petroleum Exporting Countries (OPEC) and allies such as Russia, a group known as OPEC+.