What's Going On With Oil Today?

Shares of oil companies traded higher on Friday as crude futures gained amid reports suggesting Russia could cut oil production.

What Happened?

Russia's Deputy Prime Minister Alexander Novak reportedly told state television that Russia may reduce oil output by 500,000 to 700,000 barrels per day in response to price caps placed on the country's exports, which came in reaction to Russia's invasion of Ukraine. It would amount to an output cut of 5-7 percent. 

The potential reduction in supply offset demand concerns in Friday's session, sending crude futures nearly 3% higher. Oil has been volatile as the market weighs the negative demand impact of a potential economic slowdown with supply shortages caused by the Russia-Ukraine conflict. 

Notable stocks in the sector included:

• Occidental Petroleum OXY, up 2.55%
• ConocoPhillips COP, up 3.42%
• BP BP, up 1.6%