Futures for Brent crude fell 0.36% to $82.86 a barrel, futures for US West Texas Intermediate crude fell 0.30% to $76.09.
The dollar is hovering near a seven-week high after a slew of strong US economic data reinforced the view that the Federal Reserve will have to raise interest rates further and longer. A hard dollar makes goods priced in US currency more expensive for holders of other currencies.
“Oil continues to be driven by broader financial market sentiment,” said Vandana Hari, founder of oil market intelligence provider Vanda Insights.
Concerns about the Fed’s stance returned on Friday after the personal consumption price index (PCE) rose 0.6% last month after rising 0.2% in December. “If risk aversion continues to rise, oil is likely to come under pressure again,” Hari said.
On the supply side, Russia plans to cut oil exports from its western ports by 25% in March compared to February, topping the previously announced 5% cut in production during the month.
Oil prices have fallen about 20% in the year since February 24, 2022, when Russian troops invaded Ukraine. Two weeks after the invasion, prices jumped to a record high of nearly $128 a barrel on supply issues, but have since fallen on fears of a global economic slowdown.
