Investing.com - U.S. oil futures moved higher on Friday, but gains expected to remain limited by a stronger U.S. dollar as hopes for a potential deal between Russia and OPEC to cut a global supply glut began to subside.
U.S. crude futures for March delivery were last at $31.95 a barrel, up 0.80%.
On the ICE Futures Exchange in London, the April Brent contract was up 0.36% at $34.63 a barrel.
The dollar had come under pressure after New York Federal Reserve President William Dudley said on Wednesday that the weakening outlook for the global economy and any further strengthening of the dollar could have "significant consequences" for the health of the U.S. economy.
Investors were looking ahead to the U.S. nonfarm payrolls report for January, due later Friday, for fresh indications on the strength of the labor market.
Data on Thursday showed that initial jobless claims rose by a larger-than-forecast 8,000 to 285,000 last week, but remained in territory usually associated with a firming labor market.
Global crude production has been outpacing demand following a boom in U.S. shale oil and after a decision by the Organization of the Petroleum Exporting Countries last year not to cut production in order to defend market share.
Oversupply issues will be exacerbated further as Iranian exports return to the global oil market. Tehran said this week that it planned to increase crude exports to 2.3 million barrels per day for its fiscal year, starting March 21.