Oil prices decreased more than 1% during the week ending March 4, over demand uncertainty in the US while several bullish factors including OPEC+ production cut decision, weak US dollar and rising hopes over US Federal Reserve's (Fed) interest rate cuts aided price increases.
International benchmark Brent crude traded at $82.48 per barrel at 3 p.m. local time (1200 GMT) on Friday, decreasing by 1.29% relative to the closing price of $ 83.55 a barrel on Friday last week.
West Texas Intermediate (WTI), the American benchmark, traded at $78.39 a barrel at the same time on Friday, for a fall of around 1.97% from last Friday's session that closed at $79.97 per barrel.
Oil prices started the week on a positive note after several big producers in the OPEC+ group including Saudi Arabia and Russia agreed to continue production cuts until the end of June.
Saudi Arabia and Russia said they would cut output by 1 million barrels per day (bpd) and 471,000 bpd, respectively while Iraq and UAE agreed to reduce daily production by 220,000 barrels and 163,000 barrels, respectively.
At the end of June the countries will re-evaluate their output cuts and could change their output level according to market conditions, OPEC announced.
A weaker US dollar against other currencies also supported the rise in oil prices. The weak dollar is expected to enhance demand by making oil cheaper for those who use foreign currencies.
Oil prices also received upward support following US Federal Reserve Chairman Jerome Powell's speech signaling that Fed may cut interest rates sooner rather than later.
Powell said that they are 'not far' from the confidence required to loosen monetary policy, adding that policymakers are aware of the risks that will occur if interest rates are cut too late.
Meanwhile, demand uncertainty in the US and buildup in inventory which suggests a drop in demand in the world's biggest oil consumer exerted downward pressure on prices.
According to data by Energy Information Administration, commercial crude oil inventories rose by 1.4 million barrels last week, beating the market expectations.
American Petroleum Institute's latest estimate released on Tuesday revealed that crude oil inventories increased by 423,000 barrels last week, marking the fifth consecutive week of rises.
However, data also revealed that gasoline and distillate fuel oil inventories fell by around 4.5 million barrels and 4.1 million barrels, respectively, easing some demand concerns.
Stocks for both sources declined more than market expectations, indicated a demand recovery in the US.
By Duygu Alhan
Anadolu Agency
energy@aa.com.tr