The front-month WTI crude futures contract, which expires on Wednesday, rose 19 cents to $102.75, remaining unchanged.
Oil remained virtually unchanged on Wednesday as broader concerns about economic growth and stagnation in oil demand cut supplies. Brent crude futures fell 45 cents, or 0.4%, to $106.80 a barrel.
The front-month WTI crude futures contract, which expires on Wednesday, rose 19 cents to $102.75, remaining unchanged.
Oil prices have been supported by a tighter supply outlook following sanctions against Russia – the world’s second largest oil exporter and a major European supplier – over its invasion of Ukraine, which Moscow calls a “special operation”.
“As the Ukraine war progresses, the potential for an extended period of conflict increases and the potential loss of Russian supplies to the market increases,” said Jim Ritterbusch, president of Ritterbus and Associates in Galena, Illinois.
The market was also supported by a government report indicating a fall in US crude reserves by 8 million barrels last week due to a more than two-year export boom, data from the Energy Information Administration showed. [EIA/S]
However, both benchmarks fell nearly 5% on Tuesday, when the International Monetary Fund cut its global growth forecast by almost a full percentage point, citing the economic impact of Russia’s war in Ukraine and warning that inflation was a “clear and present danger” has arisen. many countries.
“Weak growth and rising inflationary pressures can mean only one thing: the global economy is in danger of recession,” said PM’s analyst Stephen Greenock.
The ongoing coronavirus lockdown in China has also hurt demand from the world’s top crude importer and is impacting prices.
The European Commission is working to accelerate the availability of alternative energy supplies to cut costs of imposing sanctions on Russian oil and to persuade Germany and other reluctant EU countries to accept the measure. A source told Reuters.
Meanwhile, concerns about supply were added variously. OPEC member Libya has been forced to cut production by 550,000 barrels per day due to a wave of blockades on major oil fields and export terminals, the country’s National Oil Corporation (NOC) said.
The Organization of the Petroleum Exporting Countries and its allies, collectively known as OPEC+, produced 1.45 million bpd below their production target in March, as Russian output began to decline following sanctions imposed by the West , a report by Producers Alliance showed.
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