Despite a modest decline on Friday, oil prices were expected to post their third straight week of increases for the first time since April as a result of broader supply concerns over interruptions in Libya and Nigeria as well as expectations of increased U.S. crude demand amid declining inflation.

Brent crude dipped 20 cents to $81.16 per barrel, meanwhile the WT slipped 14 cents at $76.75 per barrel.

The world's two largest oil exporters, Saudi Arabia and Russia, decided this month to intensify oil production restrictions that have been in place since November of last year, supporting crude prices even more.

The Organization of the Petroleum Exporting Countries (OPEC) increased its oil demand projection for 2023 on Thursday and added that it anticipated that demand will increase by 2.2% in 2024.

As inflation continued to decline, consumer prices in the United States increased slightly in June at the smallest annual increase rate in more than two years. The yearly growth in producer prices was the weakest in nearly three years, and it hardly increased in June.

Both signs provided the markets hope that the U.S. Federal Reserve might be nearing the end of its most rapid campaign to tighten monetary policy since the 1980s.