Oil fell about 0.1% on Friday but is on track for a weekly gain as market participants continue to assess the supply and demand outlook.
Experts said that prices were supported by data on the reduction of oil reserves in the United States, as well as signs of a decrease in inflation in the United States. However, the revision of forecasts for oil demand from groups including the International Energy Agency had a negative impact on the price of oil.
The US Dollar Currency Index (DXY), which tracks the dynamics of the dollar against six currencies (euro, swiss franc, yen, canadian dollar, pound sterling and swedish krona) rose by 0.27% to 104.75. Dollar growth makes oil less attractive to holders of other currencies.
Meanwhile, stronger-than-expected Chinese industrial production data for April signaled a possible increase in demand for petroleum products in the future. A report presented by the National Bureau of Statistics showed that industrial production growth accelerated to 6.7% per annum in April from 4.5% per annum in March. Economists had expected an increase of 5.4% per annum. Monthly, the industrial output rose by 0.97%. For the first four months of the year, industrial output grew by 6.3% per annum.
The focus also came on the news that Russia’s Tuapse refinery was set on fire by a Ukrainian drone attack, having already been offline for three months this year following a previous strike.
Investors' attention is gradually shifting to the OPEC+ meeting, which will take place on June 1. Market participants expect OPEC+ members to agree to extend current oil production restrictions, with some members seeking to have their acknowledged capacity levels upgraded.