Oil prices reversed earlier losses and inched up in Asian trade on Friday, supported by a weaker U.S. dollar and as diesel inventories fell, while Saudi Arabia and Washington continued to clash over plans by OPEC+ to slash production.

Asian stocks surged on Friday tracking an overnight rebound on Wall Street, although traders remained wary of a reversal in gains as U.S. inflation data pointed to more hawkish moves by the Federal Reserve.

Asian stocks followed Wall Street lower and bond yields remained depressed on Thursday as investors weighed the risks of global recession amid hawkish Federal Reserve rhetoric and uncertainty about the Bank of England's commitment to stabilising markets.

Oil prices moved little on Thursday, keeping to their weekly lows as markets hunkered down before key U.S. inflation data due later in the day, while a worsening outlook for crude demand kept sentiment muted. 

The Japanese yen continued to weaken against the dollar on Thursday, nearing its weakest level in 32 years as a hotter-than-expected inflation reading added to pressure from rising interest rates across the globe.

U.S. producer prices increased more than expected in September, but underlying goods prices posted their weakest reading in nearly 2-1/2 years as supply chains improved further, offering some hope in the battle against inflation.