Brent futures fell 29 cents, or 0.3%, to $106.35 a barrel around 1245 GMT, after jumping nearly 9% on Thursday in the biggest percentage gain since mid-2020.
U.S. West Texas Intermediate (WTI) crude futures were up 8 cents, or 0.1%, at $103.06 a barrel, adding an 8% jump on Thursday.
The two benchmark contracts were expected to end the week down more than 5%, after trading in the $16 range. Prices hit their highest level in 14 years almost two weeks ago, encouraging profit taking ever since.
Shortage of supply, due to traders shunning Russian barrels, the breakdown of nuclear talks with Iran, dwindling oil inventories and concerns about the impact on demand of a wave of cases of COVID-19 in China, have combined to produce a roller coaster for crude prices.
This volatility has scared off players in the oil market, which risks exacerbating price fluctuations.
Russia said a deal had yet to be reached after a fourth day of talks with Ukraine in which some signs of progress had emerged earlier in the week.
“President Putin does not seem willing to end hostilities. This should ensure that the energy complex remains well supported with plenty of room for greater volatility,” said Stephen Brennock, oil market analyst at PVM.
He also said rising U.S. interest rates signaled a strengthening U.S. economy, which could support demand for oil, after the Federal Reserve raised interest rates on Wednesday for the first time since 2018. and outlined an aggressive plan to push borrowing costs to restrictive levels next year.
Meanwhile, output from the OPEC+ producer group in February fell short of targets even more than the previous month, sources said, while the International Energy Agency said oil markets could lose three million dollars. bpd of Russian oil from April.
Consulting firm FGE said onshore product inventories in major countries are 39.9 million barrels lower for this time of year than the 2017-2019 average.