Oil rises on tight supply though interest rate hikes weigh | Reuters

Oil rises on tight supply though interest rate hikes weigh | Reuters

Oil rose on Friday, supported by supply tightness and new sanctions on Iran, but prices were on track for a weekly decline amid interest rate hikes from major central banks that fuelled worries about a sharp economic slowdown.

Brent crude was up $1.13, or 0.9%, to $120.94 a barrel at 1016 GMT, and U.S. West Texas Intermediate (WTI) crude had gained $1.03, or 0.9%, to $118.62.

Both contracts had fallen by more than $1 earlier in the session.

Brent was on track for its first weekly dip in five weeks, and U.S. crude for its first decline in eight weeks, in line with a fall in equity markets amid fears of a possible recession as central banks joined a chorus of outsized rate hikes. read more

"The influence of the macro environment has started to take over from oil specific fundamentals in recent days," said Investec's head of commodities Callum Macpherson.