Oil extends gains for second day on prospect of lower exports

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Oil extends gains for second day on prospect of lower exports

BEIJING Reuters - Oil prices extended gains for a second session on Friday as the prospect of lower exports from Russia offset rising inventories in the United States.

By the end of the day, the price of crude oil was up 61 cents, or 0.7%, to $82.82 per barrel. West Texas Intermediate crude futures WTI went up 63 cents, or 0.8%, to $76.02 a barrel.

Both benchmarks ended Thursday about 2% higher on Russia's plans to cut oil exports from western ports by up to 25% in March, which exceeded the production cuts of 500,000 barrels per day.

ANZ analysts said these reports lifted sentiment on the supply side.

After the previous week's declines by 4%, oil prices are slightly lower, dragged down by concerns about rising interest rates that could strengthen the dollar and a ninth week of a U.S. crude stocks build.

Minutes from the latest U.S. Federal ReserveFederal Reserve meeting showed that a majority of officials remained hawkish about inflation and tight labour market conditions, signalling further monetary tightening.

The dollar index, which was set for a fourth straight week of gains, was supported by the prospect of further rate hikes. The index is up 2.5% for the month. The FRX A firm dollar makes commodities priced in the greenback more expensive for holders of other currencies.

OANDA analyst Edward Moya said that the market would get more nervous on the Fed's tightening, and the next inflation report will be the focus as we close the week.

Oil has been under pressure due to a surge in U.S. crude inventories to the highest since May 2021, as refiners ran less oil during a strong maintenance season.