Oil prices rose for a second straight day on Friday, as the likelihood of decreased Russian supplies outweighed growing US inventories.
At 0215 GMT, Brent oil futures had risen 61 cents, or 0.7%, to $82.82 per barrel. WTI oil futures (WTI) gained 63 cents, or 0.8%, to $76.02 a barrel.
Both benchmarks finished Thursday around 2% higher as a result of Russia’s intentions to limit oil shipments from its western ports by up to 25% in March, which surpassed the 500,000 barrels per day drop declared by the country.
According to ANZ analysts, these news improved supply sentiment.
Oil prices are marginally down for the week, following a 4% drop the previous week, pulled down by fears about increasing interest rates, which might boost the currency, as well as a ninth straight week of an increase in US crude stockpiles.
The minutes of the most recent Federal Reserve meeting in the United States revealed that a majority of policymakers remained hawkish on inflation and tight labour market conditions, indicating continued monetary tightening.
The potential of more rate rises boosted the dollar index, which was projected to climb for the fourth week in a row. For the month, the index is presently up around 2.5%.
A strong dollar raises the cost of commodities priced in the greenback for holders of other currencies.
“The focus as we close the week will be on what happens with next inflation report, will the market get more nervous on even more tightening from the Fed,” OANDA analyst Edward Moya said.
Oil has also been pushed down by a spike in US crude stocks to its highest level since May 2021, as refiners ran less oil during a busy maintenance season.
Crude stocks increased by 7.6 million barrels to 479 million barrels, according to statistics from the US Energy Information Administration.