Demand is expected to surpass pre-pandemic levels in the second half of the year "with a healthy recovery trend," the analysis showed, easing the market oversupply to 1.2 million b/d in the third quarter and 1.1 million b/d in the fourth.

Brent was down 74 cents, or 0.8%, at $88.52 a barrel , WTI slipped 83 cents, or 0.9%, to $87.32.

Already, oil prices have hit seven-year highs in recent days over the ratcheting tensions between the West and Russia over Ukraine.

Federal oil exports in January dropped to 3.203 million b/d from 3.277 million b/d in December, according to the ministry figures.

Brent futures contract was up $1.30/b (1.44%) from the previous close at $91.33/b, WTI rose $1.21/b (1.39%) at $88.03/b.

Oil, gas and resources companies, and trading desks, are fretting about the provisions around sanctions on Russian extractive industries, financial institutions and banks, Russian leaders and businessmen, and the use of global services, such as wire transfers.

U.S. Rig Count is up 6 from last week to 610 , Canada Rig Count is up 5 from last week to 217.

Brent climbed 57 cents, or 0.6%, to $89.91 a barrel , WTI rose 54 cents, or 0.6%, to $87.15 a barrel.

U.S. commercial crude oil inventories increased by 2.4 million barrels from the previous week to 416.2 million barrels.

Brent were down 31 cents, or 0.6%, to $89.44 a barrel , WTI were down 58 cents, or 0.6%, to $86.77 a barrel.