Oil prices were a tad higher on Friday after falling more than 1 percent in the previous session on concerns about a U.S. recession and the outlook for oil demand.
Benchmark Brent crude futures edged up 0.2 percent to $86.27 a barrel, while WTI crude futures were up 0.2 percent at $82.35.
A weaker dollar offered some support as speculators raised their bets of an impending halt to the Fed's rate-hike cycle.
The dollar sharpened its losses to two-year lows after a Labour Department report showed the U.S. producer price index for final demand fell by 0.5 percent in March following a revised unchanged reading in February.
Economists had expected producer prices to come in unchanged compared to the 0.1 percent dip originally reported for the previous month.
The report also showed the annual rate of producer price growth slowed dramatically to 2.7 percent in March from 4.9 percent in February.
Combined with Wednesday's tamer-than-expected consumer price inflation data, the report helped ease concerns about inflation and the outlook for interest rates.
