Oil Rises Amid Supply Decline Expectations

Oil prices rose in early Asian trading on Friday, after a one percent decline in the previous session, as the market assessed supportive supply conditions ahead of the International Energy Agency's monthly demand forecast. By 0035 GMT, Brent crude futures increased by 17 cents, or 0.2 percent, to $86.26 per barrel. U.S. West Texas Intermediate crude futures also rose by 20 cents, or 0.2 percent, to $82.36 per barrel. Prices received support from expectations of supply shortages due to a predicted decrease in production in Russia. Analysts from ANZ Bank noted in a customer memo this morning, "Russian exports show signs of decline as production reportedly shrank by 700,000 barrels per day." On the demand side, investors are focused on the monthly oil market report to be released by the International Energy Agency later today, with the possibility that the agency may lower its global demand forecasts due to slowing macroeconomic growth.