FX.co ★ Oil Prices Rally As Russia Announces Production Cut

Oil prices climbed on Friday and headed for significant weekly gains amid news that Russia aims to cut its March oil production voluntarily by 500,000 barrels a day in response to the western price caps on Russian oil and oil products.

Benchmark Brent crude futures jumped 2.2 percent to $86.36 a barrel, while WTI crude futures were up 2.3 percent at $79.87.

"Russia will voluntarily reduce production by 500,000 bpd in March. This will contribute to the restoration of market relations", Deputy Prime Minister Alexander Novak said in a statement.

"When making further decisions, we will act based on how the market situation is developing," he said.

Hopes for strong fuel demand recovery in China, the world's top oil importer, also supported prices and offset fears of a looming recession in the United States.