Oil settled $2 per barrel lower on Friday and ended the week significantly lower, as traders fretted that future U.S. interest rate hikes could weigh on demand and became anxious over rising indicators of plentiful oil and fuel supplies.

Thursday, two Fed officials warned that future increases in interest rates are necessary to combat inflation. The sentiments strengthened the U.S. dollar, so increasing the price of oil for holders of other currencies.

Brent crude futures finished down $2.14, or 2.5%, to $83.00 per barrel, a weekly decline of 3.9%. West Texas Intermediate (WTI) U.S. crude finished down $2.15, or 2.7%, to $76.34, a decrease of 4.2% from last Friday’s close.

Several indicators of abundant supply also weighed on the market.

Despite the government’s plan to reduce oil production in March, Russian oil firms hope to maintain current levels of crude oil exports, the Vedomosti daily said on Friday, citing sources familiar with the companies’ plans.

The most recent snapshot of U.S. supplies, issued on Wednesday, revealed that crude stocks increased by 16.3 million barrels during the week of February 10 to 471.4 million barrels, its highest level since June 2021.

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