2022.11.2508:57:00UTC+00Oil Gains As Dollar Weakens On Dovish Fed

Oil prices rose sharply on Friday as the dollar continued to weaken, making it cheaper for non-dollar holders to buy greenback-priced commodities.

Supply-side risks also offered some support amid wrangling over Russian oil price cap and an impending EU ban on Russian oi.

Benchmark Brent crude futures rallied 1.4 percent to $86.54 a barrel, while WTI crude futures were up 2 percent at $79.47.

The U.S. dollar hovered near a three-month low and was headed for a weekly loss on hopes for slower interest-rate hikes in the United States.

European diplomats remained undecided about the level of a price cap on Russian oil despite the looming December 5th deadline. The EU plans to ban purchases of the country's oil products from Feb. 5.

Amid talk of split over the deal to cap prices for Russian seaborne oil, Ukraine's President Volodymyr Zelenskiy today called on European Union governments to remain united against Russia's war and to severely limit the price for Russian oil.

"There is no split, there is no schism among Europeans, and we have to preserve this. This is our mission number one this year," Zelenskiy said in an address via a live video link to a conference in Lithuania.

Earlier, media reports suggested that the G-7 countries were planning to impose a cap on Russian seaborne oil of $65-$70 a barrel.