© Reuters.
By Peter Nurse
Investing.com — Oil prices rose on Friday as the likelihood of sharp cuts in Russian crude exports outweighed rising US inventories and concerns about global economic activity.
As of 08:45 ET (1345 GMT), futures were trading 0.2% higher at $75.50 a barrel, while the contract was up 0.2% at $82.33 a barrel.
A Reuters report that helped lift the market on Friday said Russia, the world’s third-biggest crude producer, plans to cut up to 25% of oil exports from its western ports in March, which is more than the supply cut of 500,000 barrels per day that Moscow had announced earlier this week.
Such a move, if the Organization of the Petroleum Exporting Countries also continues to cut output, could send the market into deficit later this year, or perhaps next, especially if China, the world’s largest importer, resumes growth. economic after abandoning its Zero-COVID policy.
That being said, both benchmarks are still on track to post losses this week, albeit minor ones, after the US posted another accumulation, suggesting a slowdown in demand in the world’s largest consumer.
“Crude inventories rose by 7.65 million barrels, the ninth consecutive week of inventory buildup,” ING analysts said in a note. “Since mid-December, US commercial crude inventories have increased by about 61 million barrels.”
Concerns have also grown that the tightness will persuade countries to continue their monetary tightening for longer and at a higher level than previously expected, which could affect future growth.
Additionally, these increases provide a tailwind for the , making oil, which is denominated in dollars, more expensive for international buyers.
Data released on Friday showed the Fed’s preferred inflation gauge rose 0.6% in January, above the 0.4% expected. The rose 4.7%, above the 4.3% expected.
The largest in the euro zone, , contracted by 0.4%, twice what was initially estimated, in the last quarter of last year, providing a reality check to any optimistic thinking about a recovery. economy in the region.
The rig count, in decline since November, and the close for the week after.