Oil prices rose on Friday, resuming gains after taking a pause yesterday, with Brent crude rising again to a 2-month high, while on track for the fourth straight weekly gain, following the the US crude inventories drop to the lowest level since 2018.

US crude rose 1.4% to $82.82 a barrel, after opening at $81.70, and hit a low at $81.60, and Brent crude rose 1.6% to $85.42 a barrel, after opening at $84.08, and hit a low at $84.02.

The US crude lost 1.3% yesterday, due to profit-taking after hitting a 2-month high at $83.07, and Brent crude fell 0.8%.

Oil prices gained 4.75% so far this week, heading for the fourth straight weekly gain.

The dollar index fell more than 0.2% today, hitting a 2-month low at 94.62 points, which lifts prices of dollar-denominated commodities.

The Energy Information Administration reported yesterday that the US crude inventories fell 4.6 million barrels during the past week, while analysts forecast a drop by 2.1 million barrels.

According to the data, the total US commercial stocks fell to 413.5 million barrels, the lowest level since the week ending on October 5, 2018.

While the US output fell 100K barrels last week, with the total at 117 million barrels per day.

Euro rose in European trade against dollar for fourth straight session, marking two-month highs and on track for the largest weekly profit since May 2021, while investors await ECB President Christine Lagarde remarks on the future of European policies.

EUR/USD rose 0.25% to 1.1482, the highest since November 11, with an intraday low at 1.1451, after rising 0.1% yesterday, the third profit in a row.

Euro is up 1.1% this week against dollar, on track for the largest weekly profit since May 2021.

The dollar index fell 0.2% on Friday, the fourth loss in a row, to a two-month low at 94.62, against a basket of major rivals.

US 10-year treasury yields continue to decline even as US inflation hits highest levels since 1982.

Fed members are repeatedly bolstering the case for multiple rate hikes in 2022, up to 4 hikes to control inflation but the dollar is nonetheless weakening.

In Europe, some analysts are expecting a rate hike in the last quarter of the year as inflation hit fresh record highs in December.

US stock indices (except for Dow Jones) fell in early trading on Thursday, after the release of disappointing economic data,

The US producer prices index rose by 0.2% in December, lower than forecasts of 0.4%.

The core PPI reading (excluding volatile commodities) rose by 0.5%, on par with forecasts.

The initial unemployment claims reached 230K during the past week, worse than forecasts of 199K, and worse than the previous reading of 207K.

As for stocks, Dow Jones rose 0.3% or 130 points to 36,418 as of 15:24 GMT, and S&P 500 fell 0.1% or 1 point to 4,725, while Nasdaq fell 0.3% or 42 points to 15,146 points.

Oil prices continued to fall as the US market opened on Thursday, falling for the first day in 3, after hitting a 2-month high due to profit-taking, but today's loss remains limited thanks to a drop in the US crude inventories and oil production, while the US dollar fell against its peers.

US crude fell 0.9% to $82.06 a barrel, after opening at $82.79, and hit a high at $82.91, and Brent crude fell 0.6% to $84.20 a barrel, after opening at $84.73, and hit a high at $84.94.

The US crude gained 1.8% yesterday, and hit a 2-month high at $83.07, and Brent rose 1.3% and hit the highest since November 10 at $85.18, 2.1%, following the US Energy Information Administration's weekly report..

The Energy Information Administration reported today that the US crude inventories fell 4.6 million barrels to 413.5 million barrels during the past week, while analysts forecast a drop by 2.1 million barrels, which is the lowest level since the week ending October 5, 2018.

US oil production also fell 100,000 barrels per day last week, to a total of 11.7 million barrels per day.

The dollar index fell more than 0.3% today, deepening losses for the third day in a row, and hit a 2-month low at 94.71 points.

The greenback drop lifts demand dollar-denominated commodity prices, making prices cheaper for other currencies buyers.