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Brent futures rose $2.08, or 1.88%, to $112.98 per barrel by
0922 GMT, while U.S. West Texas Intermediate (WTI) crude climbed
$2.00, or 1.85%, to $110.26 a barrel.
Brent and WTI are on track to rise for a second week in a row,
buoyed by the EU's proposal to phase out supplies of Russian
crude oil in six months and refined products by the end of 2022.
It would also ban all shipping and insurance services for
transporting Russian oil.
The EU is tweaking its sanctions plan in a bid to win over
reluctant states, three EU sources told Reuters on Friday.
"The looming EU embargo on Russian oil has the makings of an
acute supply squeeze. In any case, OPEC+ is in no mood to help
out, even as rallying energy prices spur harmful levels of
inflation," PVM analyst Stephen Brennock said.
Ignoring calls from Western nations to hike output more, the
Organization of the Petroleum Exporting Countries, Russia and
allied producers, a group known as OPEC+, stuck with its plan to
raise its June output target by 432,000 barrels per day.
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However, analysts expect the group's actual production rise to
be much smaller as a result of capacity constraints.
"There is zero chance of certain members filling that quota as
production challenges impact Nigeria and other African members,"
said Jeffrey Halley, senior market analyst Asia Pacific at OANDA.
A U.S. Senate panel has advanced a bill that could expose OPEC+
to lawsuits for collusion on boosting oil prices.
Investors are also eyeing higher demand from the United States
this fall as Washington unveiled plans to buy 60 million barrels
of crude for its emergency stockpiles.
Demand concerns on signs of a weakening global economy capped
the price rise.
The Bank of England on Thursday warned that Britain risks a
double-whammy of a recession and inflation above 10% as it
raised interest rates to their highest since 2009, hiking by a
quarter of a percentage point to 1%.
And strict COVID-19 curbs in China are creating headwinds in the
second quarter for the world's second-largest economy.
(Additional reporting by Florence Tan in Singapore and Laura
Sanicola in New York; editing by Jason Neely)
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