(Updated at closing. Change wording and author signature)
By Laura Sanicola
Feb. 17 (Reuters) –
Oil ended the week lower, falling more than $2 on Friday, amid fears that future rate hikes by the US Federal Reserve could weigh on demand and signs of plentiful supplies of crude and fuel.
* Two Federal Reserve officials warned on Thursday that higher borrowing costs are key to curbing inflation. The announcements drove up the US dollar, making oil more expensive for buyers using other currencies.
* Brent crude futures fell $2.14, or 2.5%, to $83.00 a barrel, down 3.9% for the week. U.S. West Texas Intermediate (WTI) fell $2.15, or 2.7%, to $76.34, down 4.2% from last Friday.
* “Rate hike nervousness is back in full force,” said Stephen Brennock of oil broker PVM.
* Various signs of abundant supply also weighed on the market.
* The latest snapshot of US supplies, released on Wednesday, showed crude inventories for the week ending February 10 rose by 16.3 million barrels to 471.4 million barrels, their highest level since June 2021 .
* The International Energy Agency and the Organization of the Petroleum Exporting Countries this week raised their forecasts for global oil demand growth for this year, citing expectations of stronger Chinese demand, which offered a some price support. .
* In addition, the Saudi energy minister said the current OPEC+ deal, which brings together OPEC producers with Russia and others, to cut oil production targets by 2 million barrels per day, will remain in effect until the end of the year. (Additional reporting by Yuka Obayashi and Sudarshan Varadhan; editing by Jason Neely, Spanish editing by José Muñoz in the Gdansk newsroom)