*
U.S. crude falls more than 4% during the week
*
Russia to keep current level of oil exports in March -
Vedomosti
*
U.S. crude inventories soared in weekly supply report
*
OPEC+ deal to continue to end of year-Saudi energy
minister
(New throughout, updates prices, market activity and comments
to settlement, adds Baker Hughes data)
By Laura Sanicola
Feb 17 (Reuters) - Oil settled down $2 a barrel on
Friday and ended the week markedly lower, as traders worried
that future U.S. interest rate hikes could weigh on demand and
got nervous about mounting signs of ample crude and fuel supply.
On Thursday, two Fed officials warned additional hikes in
borrowing costs are essential to curb inflation. The sentiments
lifted the U.S. dollar, making oil more expensive for holders of
other currencies.
Brent crude futures settled down $2.14 or 2.5%, to
$83.00 a barrel, falling 3.9% week on week. West Texas
Intermediate (WTI) U.S. crude settled down $2.15, or
2.7%, to $76.34, falling 4.2% from last Friday's settlement.
"Rate hike jitters have returned with a vengeance," said
Stephen Brennock of oil broker PVM.
Various signs of ample supply also weighed on the market.
Russian oil producers expect to maintain current volumes of
crude oil exports, despite the government's plan to cut oil
output in March, the Vedomosti newspaper said on Friday, citing
sources familiar with companies' plans.
The latest snapshot of U.S. supplies, released on Wednesday,
showed crude inventories in the week to Feb. 10 rose by 16.3
million barrels to 471.4 million barrels, their highest level
since June 2021.
"Because oil storage is at a 19 month high, refiners are
going to stretch out turnaround season for as long as they can,"
said Bob Yawger, director of energy futures at Mizuho.
Heating oil cracks fell 5% on Friday as warm weather sapped demand for the fuel in mid-February.
The oil and gas rig count, an early indicator of future output, fell by one to 760 in the week to Feb. 17, energy services firm Baker Hughes Co said on Friday.
Despite this week's rig decline, Baker Hughes said the total count was still up 115, or 18%, over this time last year.
Some support came from moves this week by the International Energy Agency and the Organization of the Petroleum Exporting Countries to raise their forecasts for global oil demand growth this year, citing expectations for more Chinese demand.
And Saudi Arabia's energy minister said the current deal by OPEC+, which groups OPEC producers with Russia and others, to cut oil output targets by 2 million barrels per day, would be locked in until the end of the year, adding he remained cautious on Chinese demand. (Additional reporting by Alex Lawder, Yuka Obayashi and Sudarshan Varadhan; editing by Jason Neely, Kirsten Donovan and David Gregorio)
