FX.co ★ Oil Rises On Fears Over Russian Supply Cuts

Oil prices were trading higher on Friday as expectations for lower Russian production offset signs of rising U.S. inventories.

Benchmark Brent crude futures climbed 0.8 percent to $82.85 a barrel, while WTI crude futures were up 0.8 percent at $75.96.

Moscow plans to cut exports by up to 25 percent from its western ports in March in a bid to boost prices, Reuters reported.

Russia had already announced plans to cut its oil production by 500,000 barrels per day (bpd) in the month, amounting to 5 percent of its output or 0.5 percent of global production.

The prospect of reduced supply from Russia into the global market combined with optimism around China's reopening offset signs of rising U.S. inventories.

Data from the Energy Information Administration showed that crude oil inventories surged by 7.6 million barrels in the week ended February 17th compared to economist estimates for an increase of 2.1 million barrels.

Distillate fuel inventories also jumped by 2.7 million barrels, while gasoline inventories fell by 1.9 million barrels.