Oil climbs as dollar slips and supply risks linger

Oil climbed on Friday as the dollar eased and supply risks remained, though recession fears and China’s COVID outbreaks kept a check on prices.

Brent crude futures were and were able to touch the high of $96.51 a barrel at 0740 GMT, and eventually closed at $94.14. The contract is headed for a weekly climb of more than 0.5%.

WTI crude futures were up $1.94, or 2.2%, at $90.11 a barrel, but eventually WTI surged to $92.61 on course for a weekly gain of more than 2%.

Both contracts rose as the dollar slipped. A weaker dollar boosts oil demand as it makes the commodity cheaper for those holding other currencies.

While demand concerns weighed on the market, supply is still expected to be tight, with Europe’s upcoming embargoes on Russian oil starting and a slide in US crude stockpiles.