Brent futures fell 49 cents, or 0.6%, to $87.89 a barrel, while US West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to $85.14.
see photosEarlier in the week, both Brent and WTI reached their highest level since October 2014.
Oil prices fell for the second day in a row on Friday under pressure from unexpected rises in US crude and fuel inventories, while the benchmark took profits after touching a seven-year high in the week.
However, both the crude benchmarks rose for the fifth consecutive week, rising nearly 2% this week. So far this year, prices have risen by more than 10% on concerns of supply tightening.
Brent futures fell 49 cents, or 0.6%, to $87.89 a barrel, while US West Texas Intermediate (WTI) crude fell 41 cents, or 0.5%, to $85.14.
Earlier in the week, both Brent and WTI reached their highest level since October 2014.
“The latest pullback is most likely due to pre-weekend profit-taking and the absence of a fresh bullish catalyst,” said PVM analyst Stephen Brennock, noting Thursday’s bearish data from the Energy Information Administration (EIA).
The EIA reported the first US stock build-up since November and gasoline inventories at an 11-month high, ahead of industry expectations.
Both the crude benchmarks rose for the fifth consecutive week, rising nearly 2% this week.
“Energy traders were not surprised to see the rally in oil prices,” said Edward Moya, senior market analyst at OANDA. “WTI crude fell after a surprise build with US reserves sending risky assets into freefall following the bloodbath on Wall Street.”
“Crude oil prices may not be a one-way ticket to $100 oil, but supply-side fundamentals certainly have support that could be in place by the summer,” Moya said.
Other analysts also said they expect the current pressure on prices to remain limited due to supply concerns and rising demand.
OPEC+, a grouping of the Organization of the Petroleum Exporting Countries (OPEC) along with Russia and other producers, is struggling to meet its monthly production growth target of 400,000 barrels per day (bpd).
In the United States, energy firms this week cut oil rigs for the first time in 13 weeks.
Tensions in Eastern Europe and the Middle East are also raising fears of supply disruptions.
Top diplomats of the US and Russia did not achieve any major breakthrough in talks on Ukraine on Friday, but agreed to continue talks to resolve the crisis, allaying fears of a military conflict.
“With less additional OPEC+ capacity, lower inventories and rising geopolitical tensions, they expect Brent to be around $120 a barrel in mid-2022,” Bank of America analysts said.
UBS expects crude demand to hit record highs this year and Brent will trade in the $80-$90 per barrel range for now.
Meanwhile, Morgan Stanley raised its third-quarter Brent price forecast to $100 a barrel, up from its previous estimate of $90.
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On the demand side, quarterly results from energy firms Schlumberger NV and Baker Hughes Co beat expectations as higher crude and natural gas prices drove demand for their services.
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