Oil prices rose sharply as falling US stocks raised concerns about supply in the midst of a blow to Russian exports from economic sanctions.
Brent futures rose $ 1.77, or 1.53%, to $ 117.25 a barrel, after falling 14 cents in the previous session.
US WTI rose $ 1.51, or 1.38%, to $ 110.78 a barrel after losing 36 cents on Tuesday.
The market is affected by the prospect of further sanctions on Russia, the world’s second-largest crude exporter after its invasion of Ukraine.
Prices fell on Tuesday as the European Union appeared reluctant to agree to a ban on Russian oil.
However, US President Biden is expected to announce more sanctions on Russia when he meets with European leaders on Thursday in Brussels.
“We expect continued high volatility over the rest of the week, and especially close to Thursday’s NATO summit,” said Vanda Insights analysts.
They argue that there could be a relief for the market if the EU abandons the idea of banning Russian oil imports.
They say supply concerns remain high as long as Russia-Ukraine peace talks are deadlocked.