Oil Prices Increase Amid Russian Supply Threats

Oil prices rose on Friday, as investors considered Russia's threat to halt oil and gas exports to some buyers, but crude was set for a second straight weekly decline as central banks' aggressive rate hikes and China's Covid-19 curbs weighed on demand.
Brent crude futures rose 27 cents, or 0.3%, to $89.42 a barrel. US West Texas Intermediate crude futures climbed 15 cents, or 0.2%, to $83.69, Reuters reported.
Both oil benchmarks were headed for a weekly drop of 4%, with the market sliding at one point this week to its lowest level since January.
The decline is capped by underlying supply tightness amid Russia's threat to cut oil flows to any country that backs a price cap on its crude, as well as a small output cut by the Organization of Petroleum Exporting Countries and allies, and a weaker outlook for US oil production growth.
The US Energy Information Administration on Thursday said it expected US crude output to rise by 540,000 barrels per day to 11.79 million bpd in 2022, down from an earlier forecast for a 610,000 bpd increase.