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Brent crude futures rose $1.14, or 1%, to $107.78 a barrel at
1003 GMT, after surging nearly 9% on Thursday in the largest
percentage gain since mid-2020.
U.S. West Texas Intermediate (WTI) crude futures climbed $1.24,
or 1.2%, to $104.22 a barrel, adding to an 8% jump on Thursday.
Both benchmark contracts were set to end the week down more than
4%, after having traded in a $16 range. Prices have dropped from
14-year highs hit nearly two weeks ago.
The supply crunch from traders avoiding Russian barrels,
stuttering nuclear talks with Iran, dwindling oil stockpiles and
worries about a surge of COVID-19 cases in China hitting demand
have combined to produce a rollercoaster ride for crude this
week.
The volatility has scared players out of the oil market, which
in turn is likely to exacerbate price swings.
Despite battleground setbacks and punitive sanctions by the
West, Russian President Vladimir Putin has shown little sign of
relenting. The Kremlin said an agreement had yet to be reached
after a fourth day of talks with Ukraine.
"President Putin appears unwilling to end hostilities. This
should ensure that the energy complex remains well supported
with plenty of scope for further volatility," PVM oil market
analyst Stephen Brennock said.
He also said rising U.S. interest rates pointed to a stronger
U.S. economy, which could underpin oil demand.
RBC Capital analyst Helima Croft cautioned that Russian oil
export losses will likely prove enduring and that offsetting
barrels are in short supply.
Underscoring tight supplies, consultancy FGE said on-land
product stocks at key countries are 39.9 million barrels lower
for this time of the year relative to the 2017-2019 average.
(Additional reporting by Sonali Paul in Melbourne and Florence
Tan in Singapore; editing by Jason Neely)
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