Oil gains on Russian supply cut worries, but higher U.S. inventories weigh

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Oil gains on Russian supply cut worries, but higher U.S. inventories weigh
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Oil prices extended gains for a second session as the prospect of lower exports from Russia offset rising inventories in the United States. | Reuters

For the week, oil prices are slightly lower, after the previous week’s about 4 percent declines, dragged by concerns about rising interest rates that could strengthen the dollar as well as a ninth straight week of a U.S. crude stocks build.

The prospect of further rate hikes supported the dollar index, which was set for a fourth straight week of gains. The index is now up about 2.5 percent for the month. “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.

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