On Friday, oil prices continued to rise as the likelihood of decreased Russian supplies partially offset rising US inventories. Around 0215 GMT, the price of Brent crude futures increased 61 cents, or 0.7%, to $82.82 per barrel. The price of a barrel of West Texas Intermediate crude futures (WTI) increased by 63 cents, or 0.8%.
Due to Russia’s plans to reduce oil exports from its western ports by up to 25% in March, which exceeded its planned production cuts of 500,000 barrels per day, both benchmarks finished Thursday with a slight gain of roughly 2%. These reports improved the mood on the supply side, according to ANZ analysts in a note.
The dollar index, which was expected to rise for a fourth consecutive week, was supported by the potential of additional rate hikes. 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.
The next inflation report will be the main topic of discussion as the week comes to a conclusion. Will the market become more agitated due to the Fed’s potential for further tightening?, questioned OANDA analyst Edward Moya. When refiners used less oil during a busy maintenance season, U.S. crude stocks increased to their highest level since May 2021, adding further pressure to the price of oil. According to U.S. Energy Information Administration data, crude inventories increased by 7.6 million barrels to roughly 479 million barrels.
