Crude futures gains in Wednesday’s session, following the European Union’s decision to impose some sanctions on Russian oil and a few hours after China ended its two-month quarantine in Shanghai.
World-class British crude Brent crude was up 1.3% at $ 117.15 a barrel. For their part, the futures of the American crude type WTI gained 1.3% to $ 116.18 a barrel.
Both recorded gains in May, marking the sixth consecutive month of rising prices.
“Oil market sentiment seems to be rising,” said Julius Baer analyst Norbert Rucker. “Europe ‘s embargo and China’ s partial opening up fuel supply fears and push up oil prices.”
EU leaders agreed on Monday to cut 90% of oil imports from Russia by the end of this year, the toughest sanctions on the bloc since the start of the invasion of Ukraine, which Moscow calls a “special military business”. Once fully approved, sanctions on crude will be phased in over six months and on refined products over eight months.
In China, Shanghai Covid-19’s tight lockdown ended on Wednesday after two months, raising expectations for more stable fuel demand from the country.
What boosted profits were reports that some producers were exploring the idea of suspending Russia’s participation in an OPEC + production deal over expectations that such a move would boost supply. OPEC + consists of members of the Organization of the Petroleum Exporting Countries and their allies.
Although there has been no formal push for OPEC countries to pump more oil to offset a possible Russian deficit, some Gulf members have begun planning to increase production sometime in the coming months, the Wall Street Journal reported, citing its representatives. OPEC.
US crude oil production rose more than 3% in March to its highest level since November, according to a report by the US Energy Information Administration on Tuesday.
Analysts polled by Reuters had expected US crude inventories to fall last week, while gasoline inventories were expected to rise. Official government figures are expected Thursday.
Source: Capital
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