Crude increases on potential Russian cuts
On Friday, oil prices continued to rise as the likelihood of decreased Russian supplies partially offset rising US inventories. Brent crude futures were up 66 cents, or 0.8%, to $82.87 per barrel. WTI crude oil futures increased by 62 cents, or 0.8%, to $76.01.
On Russia’s plans to reduce oil shipments from its western ports by up to 25% in March, which exceeded its planned production cuts of 500,000 barrels per day, the benchmarks ended the previous session nearly 2% higher.
The level of U.S. inventories is the largest since May 2021. According to data from the U.S. Energy Information Administration (EIA), U.S. crude stockpiles increased by 7.6 million barrels to roughly 479 million barrels in the week ending February 17.
After falling by roughly 4% the week before, oil prices are marginally lower for the week, weighed down by worries about rising interest rates that would boost the dollar and reduce gasoline consumption.
The likelihood of additional rate increases helped the dollar index DXY, which was poised to post gains for a fourth consecutive week. The index has now increased by around 2.5% so far this month. Holders of foreign currencies must pay more for commodities when the dollar is strong.
Oil rises on concerns of a Russian supply cut, but growing US inventories weigh
The next inflation report will be the main topic of discussion as the week concludes. Will the market become more agitated due to the Fed’s potential for further tightening?, questioned OANDA analyst Edward Moya.
On Friday, oil prices continued to rise as the likelihood of decreased Russian supplies partially offset rising US inventories.
ANZ analysts say that reports on the supply side were better this week, which lowered oil prices slightly. The drop the previous week was less because of fears of rising interest rates and a buildup in U.S. crude supplies.
Most officials still think inflation and the labor market are a problem. They think the government should do more to control prices and the economy.
