Oil returned to a bullish trajectory on Wednesday, following a nearly 10% dip in the last two sessions, as market supply concerns resurfaced as the European Union “struggles” to agree on an embargo on Russian oil and while the flow of gas from Russia to Europe through one of the main stations of Ukraine was interrupted.
The EU has proposed imposing an embargo on Russian oil, which analysts say will further complicate the situation already prevailing in the crude market and shift flows. At present, EU members have not been able to reach an agreement on imposing an embargo, as a unanimous decision by the bloc is required but Hungary is reacting.
Additional support is being given to oil prices in hopes of boosting the Chinese economy following the weakening of inflation, as well as signs of a slowdown in coronavirus outbreaks, which bode well for economic activity.
Thus, the West Texas Intermediate crude for June delivery recorded strong gains of more than 5% on Wednesday and stood at $ 104.92 a barrel.
Brent crude for June delivery also gained significant gains, reaching $ 106.99 a barrel, up 4.42%.
Source: Capital
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