Oil prices gained as much as $1 on Friday on hints of improved fuel demand, but further gains were restricted as the market awaited signals from the chairman of the US Federal Reserve on the prospect of rate rises in a speech later in the day.

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US Fed Chair Jerome Powell will start speaking at 10 a.m. Eastern time on Friday, a half-hour after Wall Street opens for trade.  

Brent crude futures increased by 87 cents, or 0.9%, to $100.21 a barrel. WTI crude futures in the United States increased 88 cents, or 0.9%, to $93.40 a barrel. Both futures rose by as much as $1 in early trade after falling by roughly $2 on Thursday.

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Concerns about the destruction of oil demand decreased this week despite doubts over the rate rises’ pacing in the United States to combat skyrocketing inflation, keeping the benchmark oil futures on track for gains of nearly 3% for the week.

Prices were also bolstered by the prospect of the Organization of Petroleum Exporting Countries (OPEC) curbing output to counter Iran’s increased supply.

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According to Reuters, Saudi Arabia‘s anticipated OPEC+ production cutbacks, this week are expected to coincide with Iran‘s return to oil markets if it achieves a nuclear deal with the West.

The European Union is anticipating a reaction from Washington soon in response to a final offer to revive a nuclear agreement that Tehran is now reviewing, according to Reuters. However, it is uncertain how fast Iranian oil exports will begin if an agreement is achieved.

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If Iran’s sanctions are repealed, it might take a year and a half to achieve its maximum potential of 4 million barrels per day, an increase of 1.4 million BPD over its present output.

The dollar index, which measures the currency against its six major counterparts, is now at 108.53, on course for a 0.38% weekly gain and up 2.5% in August.

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The euro was trading at $0.9966 in early Asian trade, having failed to push back over parity against the dollar numerous times this week. The sterling was down 0.17% at $1.1818.

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The Australian dollar declined 0.35%, returning to the psychological threshold of $0.7, but continuing to rise against fallen European currencies. The Japanese yen fell slightly to 136.64 per dollar. Indian Rupee rises 6 paise to 79.86 against US dollar in early trade.