Oil prices boosted gains in the second session on Friday as expectations for lower Russian production and exports offset rising inventories in the US.
Higher-than-expected US crude inventories continue to challenge the oil demand outlook, but lower production prospects in Russia are having a stabilizing effect.
Brent crude futures rose 67 cents, or 0.8%, to $82.88 a barrel as of 0415 GMT. West Texas Intermediate crude futures (WTI) rose 61 cents, or 0.8%, to $76.00 a barrel.
The benchmarks closed with nearly 2% gains from the previous session, relating to Russia’s 500,000 bpd production cut in March and the plan to reduce oil exports from western ports by up to 25%.
US oil stocks are at their highest level since May 2021.
U.S. crude inventories rose 7.6 million barrels in the week of February 17 to nearly 479 million barrels, according to data from the U.S. Energy Information Administration (EIA).
Oil prices are slightly lower this week, after falling nearly 4% the previous week, driven by concerns about rising interest rates that could strengthen the dollar.
The minutes of the most recent US Federal Reserve meeting showed that the majority of officials will remain hawkish on inflation and tight labor market conditions, pointing to further monetary tightening.
Expectations of more rate hikes supported the dollar index, which was set to gain for the fourth consecutive year. The index is currently up about 2.5% monthly.
A solid dollar makes commodities priced in US dollars more expensive for those holding other currencies.
As we close the week, the market will focus on what will happen in the next inflation report and whether the Fed will be more nervous about tightening further.
